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Jay Clayton leads $12M crypto fraud case as interim SDNY US Attorney

Jay Clayton leads $12M crypto fraud case as interim SDNY US Attorney

Grafa2025/04/25 07:40
By: Mahathir Bayena
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Jay Clayton, former SEC chair and newly appointed interim US Attorney for the Southern District of New York (SDNY), has publicly addressed a major crypto fraud case involving $12 million in investor losses.

On April 23, the US Attorney’s Office announced that Eugene William Austin, also known as Hugh Austin, was sentenced to 18 years in prison after convictions on conspiracy to commit wire fraud, money laundering, and interstate transportation of stolen property.

Austin, along with his son Brandon Austin who received a four-year sentence, ran a fraudulent crypto investment scheme that defrauded over 24 victims of approximately $12 million.

“For years, Hugh Austin was the leader of a fraud and money laundering scheme that stole more than $12 million from more than two dozen victims,” Clayton said.

He added that Austin involved his son in the crimes and misused investor funds on personal expenses including luxury hotels.

Clayton’s statement marks one of his first public comments since assuming the interim US Attorney role on April 22.

President Donald Trump nominated Clayton on January 20, but Senate Minority Leader Chuck Schumer has blocked his confirmation vote, citing concerns over Trump’s respect for the law.

Under current regulations, Clayton can serve as interim US Attorney for up to 120 days without Senate approval.

The SDNY district is a key jurisdiction overseeing Wall Street and major financial institutions.

Clayton is expected to oversee other high-profile crypto-related cases, including the sentencing of former Celsius CEO Alex Mashinsky.

The recent resignation of acting US Attorney Danielle Sassoon followed Justice Department orders to halt a case against New York City Mayor Eric Adams.

Clayton’s leadership in prosecuting crypto fraud cases signals continued federal focus on digital asset-related crimes within one of the nation’s most influential financial districts.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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