Two defendants in a father-son crypto scam have been sentenced to prison for allegedly embezzling $12 million.

Two defendants in a father-son crypto scam have been sentenced to prison for allegedly embezzling $12 million.

 Crypto fraud mastermind Hugh Austin, who allegedly involved his own son in a $12 million laundering scheme, has been sentenced to nearly two decades in prison for masterminding the scheme.

Investors’ funds were destroyed in a $12 million scheme

According to a press release from the U.S. Attorney’s Office on April 23, Austin and his son Brandon fraudulently acted as crypto brokers for a large amount of digital assets in a crypto scheme and made short-term crypto investments in the hopes of securing high returns for entrepreneurs and investors.

The father-son duo, who often solicited loans from friends and associates and promised to pay them back with interest, also sought out high-net-worth individuals to provide investments for small businesses and startups.

 In reality, the Austins are accused of misusing investor funds in their crypto scheme, spending them on luxury hotels, flights, restaurants and more, and “paying victims nominal sums to prolong the scheme.”

“For years, Hugh Austin was the leader of a fraud and money laundering ring that stole more than $12 million from more than two dozen victims,” said Jay Clayton, U.S. Attorney for the Southern District of New York.

“Austin implicated his own son in his crimes, worked with him to defraud victims, and spent investor money on personal expenses, such as luxury hotels,” he added. “Thanks to the work of this office’s professional prosecutors and our law enforcement partners, Austin will now be held accountable for the harm he caused to individual investors and others.”

 Father-son duo sentenced

In addition to the prison time, the elder Austin was sentenced to three years of supervised release and more than $18 million in restitution and forfeiture.

Brandon Austin was previously sentenced to four years in prison for his role in the digital asset scheme.

Brandon is currently serving his sentence at the Lewisburg Federal Correctional Facility, while Hugh Austin is expected to serve the remainder of his sentence at the Brooklyn Metropolitan Detention Center.

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#Crypto scam

#Father-son scam

#Embezzlement

#Cryptocurrency fraud

#Sentencing

#Prison sentence

#Financial crime

#$12 million