Ex-SEC chair, now heading SDNY, presents rebuke in $12M crypto fraud case

Jay Clayton, not too long ago appointed interim US Lawyer for the Southern District of New York (SDNY) and former chair of the Securities and Change Fee, has begun providing statements in felony circumstances involving crypto fraud.

In an April 23 discover, the US Lawyer’s Workplace stated Eugene William Austin, also called Hugh Austin, had been sentenced to 18 years in jail following his conviction on conspiracy to commit wire fraud, conspiracy to commit cash laundering, and conspiracy to commit interstate transportation of stolen property. Collectively along with his son, Brandon, sentenced to 4 years, Austin supplied fraudulent crypto funding providers, leading to roughly $12 million in losses to greater than 24 folks.

“For years, Hugh Austin was the chief of a fraud and cash laundering scheme that stole greater than $12 million from greater than two dozen victims,” stated Clayton. “Austin concerned his personal son in his crimes, working with him to tear off victims and spending investor cash on private bills, like luxurious lodges […] Austin will now be held accountable for the hurt he triggered to particular person traders and others.”

The felony case involving digital belongings marked certainly one of Clayton’s first public statements since turning into the interim US Lawyer on April 22. US President Donald Trump nominated Clayton on Jan. 20 when he took workplace. The district has since seen the resignation of performing US Lawyer Danielle Sassoon in response to the Justice Division directing her to halt a case in opposition to New York Metropolis Mayor Eric Adams.

Associated: US prosecutors file over 200 sufferer statements in Celsius ex-CEO’s case