Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (HSI), announced today the arrest of EUGENE WILLIAM AUSTIN, JR., a/k/a Hugh Austin, for charges in connection with a scheme to steal money from investors and other victims by offering a variety of fraudulent cryptocurrency-related investment services, including sales of multimillion-dollar batches of cryptocurrency, marketing and advertising services, and short-term investments and loans. EUGENE AUSTIN was arrested on July 5, 2023, and was presented that same day before U.S. Magistrate Judge Jennifer E. Willis. Mr. Williams also announced the guilty plea of EUGENE AUSTINs son, BRANDON P. AUSTIN, who pled guilty on April 13, 2023, before U.S. District Judge P. Kevin Castel to participating in a money laundering conspiracy with his father, EUGENE AUSTIN, relating to his involvement in conducting financial transactions with the intent to conceal proceeds of fraud.

U.S. Attorney Damian Williams said: This is the third case we are announcing this week to shed light on fraud in the cryptocurrency and digital asset ecosystem. As alleged, the father-son duo of Hugh and Brandon Austin engaged in a cryptocurrency fraud and money laundering scheme that victimized both sophisticated and novice cryptocurrency investors alike out of millions of dollars. They used the money from victims to fund a lavish lifestyle of travel, luxury hotels, and fancy restaurants. Thanks to the tenacity of HSI and the career prosecutors of this Office, Hugh Austin is now facing serious criminal charges for his alleged crimes, and Brandon Austin has already pled guilty.

HSI Special Agent in Charge Ivan J. Arvelo said: The charging of Hugh and Brandon Austin reflects our ongoing commitment to thwarting individuals involved in all types of financial crimes, especially those that affect the digital environment and subsequently impact the security of our economy. As alleged, these sophisticated scammers exploited the novelty of digital currency to defraud unsuspecting investors out of millions of dollars, while utilizing it as a cover to engage in illicit activity. HSI commends the prosecutorial team at the Southern District of New Yorks Complex Frauds and Cybercrime Unit for their unwavering support.

According to the allegations in the Complaint, which was unsealed today in Manhattan federal court, as well as publicly filed court documents and statements made at public court proceedings:[1]

EUGENE WILLIAM AUSTIN, JR. participated in a scheme with his son BRANDON P. AUSTIN and others to steal money from investors and other victims by fraudulently offering to, among other things: (i) serve as a broker for sales of large quantities of cryptocurrency at below-market exchange rates; (ii) provide short-term investments in cryptocurrency for purportedly high returns; and (iii) provide marketing and advertising services to small businesses, while knowing that, in fact, EUGENE AUSTIN and BRANDON AUSTIN would not provide the promised cryptocurrency, returns, or services. EUGENE AUSTIN also frequently sought personal loans from friends and acquaintances in connection with his purported cryptocurrency and investment businesses, falsely promising to pay lenders back with interest. In each instance, investors and lenders lost their money, and EUGENE AUSTIN and BRANDON AUSTIN frequently spent investors funds on personal expenses, including airline travel, luxury hotels, restaurants, and shopping, as well as nominal payments to victims to prolong the scheme. In total, EUGENE AUSTIN and BRANDON AUSTIN have caused more than $10 million in losses to over 20 victims. Below are several examples of victims defrauded by AUSTIN and BRANDON:

In connection with BRANDON AUSTINs guilty plea, he forfeited his rights and interest in a 2022 E-Pace P250 Jaguar, depicted below:

* * *

EUGENE WILLIAM AUSTIN, JR., 60, of Port Jefferson, New York, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit money laundering, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to commit interstate transportation of stolen property, which carries a maximum sentence of five years in prison.

BRANDON P. AUSTIN, 27, of Coram, New York, pled guilty to one count of conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. In connection with the guilty plea, BRANDON AUSTIN also agreed to forfeit $3,406,450 and to make restitution to victims in the amount of $1,985,251. BRANDON AUSTIN is scheduled to be sentenced on September 6, 2023, at 12:00 p.m., by Judge Castel.

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of each defendant will be determined by the judge.

Mr. Williams praised the investigative work of HSI.

This case is being handled by the Offices Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew K. Chan, Sarah Lai, and Olga I. Zverovich are in charge of the prosecution.

The charges contained in the Complaint are merely accusations and the defendant, EUGENE WILLIAM AUSTIN, JR., a/k/a Hugh Austin, is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.

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Father And Son Charged In Manhattan Federal Court With ... - Department of Justice

Nova Scotia

Cassidy Chisholm - CBC News

Posted: 9 Hours Ago

The Nova Scotia Securities Commission is warning people to be careful with their money and understand what they're getting into after Nova Scotians lost more than $1 million to cryptocurrency scams since the fall.

"We've seen a tremendous increase in crypto-related frauds and scams over the last 12 to 18 months," David Harrison, the commission's investor education manager, told CBC Radio's Information Morning Nova Scotia on Monday.

Harrison said there have been a number of different scams reported in the province, and some people have lost tens of thousands to hundreds of thousands of dollars over "very short periods of time."

He said these particular scams are on the rise in Nova Scotia as people turn to cryptocurrency as a second source of income to help with high costs of living.

One of the more common scams is the "pig butchering" scheme, he said, in which someone contacts you out of the blue, builds a relationship with you and then convinces you they have successfully invested in crypto.

They will then convince you to attempt to do the same by using money from your bank loan, credit card or line of credit. In actuality, they're aiming to take as much money from you as possible.

"So not only are they losing their investment, they now owe tremendous amounts of money to these loans that they have to pay back someway as well," Harrison said.

There are also schemes that encourage people to buy crypto and then hire someone to do the trading for them.

"A lot of people older people especially that are interested in crypto trading, don't know how to do it themselves, so they're trying to find a professional or someone that knows how to do it for them, despite the fact there's no registered category of people that do that in this country," Harrison said.

"So unfortunately, they're getting people to buy crypto on our actual exchange and then transfer that crypto to their wallet, effectively taking it away from them."

Harrison said if someone is asking you to move crypto from your wallet to theirs to trade on your behalf,"that's a major red flag."

"Crypto transactions are fairly easy to trace, but due to the security features involved with them, once it's out of your wallet and in someone else's, it's practically impossible to reclaim it," he said.

Maureen Ward, a partner and co-head of the fraud law practice at Bennett Jones in Toronto, said these cryptocurrencyscams are on the rise across Canada.

She said people are often enticed by cryptocurrency because there are real stories of people making millions from it but the industry is changing.

"Now the industry is really rife with fraud, sadly, and I think that's really why it's growing. It's a perfect opportunity for a fraudster," Ward said.

"The cryptocurrency industry and that decentralized network is an ideal environment within which a fraudster can operate."

She said she's not surprised by the loss in Nova Scotia.

"I would have thought it was more, and it probably is more and people aren't reporting it because there's a bit of hopelessness when it comes to being a victim of crypto fraud," she said.

She said some people may not pursue criminals through the courtsbecause they're hesitant to spend more money legal fees to recover their assets.

Harrison said Canada has implemented new security laws that require crypto trading services to be registered. These registered services can be found on the Nova Scotia Securities Commission website.

He said people should be careful of any online ads that offer crypto trading services or anyone who offers these services through social media claiming they will make you money.

Ward agrees.

"If it's too good to be true, it is likely not true," she said.

Still, Ward said she doesn't want to sway people from the industry.

"It's just really a matter of having a level of confidence [and] doing your due diligence and being careful with your money and not sort of putting all your eggs in one basket, if you will," she said.

"You have to assume you're going to lose it, frankly, if you're going to put money into it."

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Cryptocurrency scams on the rise in Nova Scotia - CBC.ca

The world of cryptocurrencies has witnessed tremendous growth and innovation over the past decade. However, despite the potential put forth by this asset class, their mainstream adoption has continued to face significant challenges ranging from regulatory issues to a lack of consumer knowledge.

One of the most significant hurdles to the mainstream adoption of crypto has been the lack of clear regulatory frameworks across the planet. As per MaskEX Academy, a one-stop learning platform for all things crypto devised by cryptocurrency exchange MaskEX, the absence of comprehensive regulations has and is continuing to hamper the widespread adoption of digital currencies, and therefore it is crucial for governments to establish clear governance systems that are not only capable of protecting investors from fraud/criminal activities but also fostering confidence and nurturing innovation.

Trust and security concerns also pose significant challenges. Building trust in digital currencies requires widespread awareness of their advantages and continued oversight by governments. However, security risks such as theft and hacking remain a significant concern for investors. In this regard, a study by Reuters has highlighted that over the past year or so, federal regulators worldwide have played a critical role in updating and enforcing regulations as they apply to cryptocurrency businesses, including Know Your Customer (KYC) rules.

That said, the overlapping jurisdictions of these government regulators, coupled with differing interpretations of AML compliance, have triggered confusion and criticism from the cryptocurrency industry, thereby necessitating robust security measures and protocols to ensure the safety of investors assets.

Scalability is another hurdle hindering the use of cryptocurrencies for voluminous transactions. As cryptocurrencies and exchanges have adopted more efficient networks, they have been faced with congestion issues. Developers are actively working on scaling solutions and new protocols to address these issues, enhancing the usability of cryptocurrencies for day-to-day transactions.

Lastly, a general lack of awareness and understanding of how cryptocurrencies function is a major hurdle to widespread crypto adoption. According to a report, there is a need for greater education on the subject so that people realize what they are getting themselves into when they invest in digital currency. Clear and concise educational efforts are needed to explain the benefits of digital currencies, their underlying technology (ala blockchain) as well as their innovative applications.

From the outside looking in, experts see the widespread mainstream crypto adoption occurring as and when a large number of blockchains start serving multiple purposes. Moreover, the path to adoption could feature shake-outs and consolidation, resulting in there being just a small number of active blockchains, comprising those that are the most efficient, robust, and developed-on while excluding the possibility of centralization. In fact, futurists believe that when crypto goes fully mainstream, crypto-enabled tech will be embedded everywhere and fragmented into multiple unique disciplines.

Recent trends indicate a positive shift toward the mainstream adoption of cryptocurrencies. A recent survey shows that crypto is rapidly gaining appeal among younger demographics, so much so that 40% of the participants (lying in the 18-35 category) noted that they want to/are planning to pay for goods or services via digital assets by the end of 2023. This marks a substantial shift in user attitude from digital currencies being seen as solely an investment vehicle to a means of doing business on a regular basis.

However, its not just consumers who are driving this trend. Merchants are also recognizing the benefits of accepting crypto payments. The aforementioned survey found that 82% of merchants who embraced cryptocurrency payments experienced net-new growth, attracting new customers and reaching new demographics. Moreover, over 80% of merchants with existing crypto-payment options said it was easier to settle payments via crypto than using fiat currencies.

A separate report reveals that 81% of the general population have heard of cryptocurrency, and 39% own or have owned crypto at some point. Moreover, 60% of the respondents have heard of stablecoins. This data shows that crypto is not just a niche market for tech enthusiasts but is becoming a part of normal finance for many people. Interestingly, the report also shows that people are not just holding cryptocurrency but view them as a viable alternative to traditional money transfer services.

While cryptocurrencies have made significant strides in recent years, numerous challenges continue to impede their widespread adoption. Addressing these obstacles will be crucial for realizing the full potential of these digital assets. Through collaborative efforts between governments, businesses, developers, and users, it will be possible to pave the way for widespread crypto adoption and unlock the benefits of a decentralized and inclusive financial ecosystem. Thus, it will be interesting to see how the future of this space plays out from here on end.

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Paving the Way for Mainstream Cryptocurrency Adoption - FinanceFeeds

CALIFORNIA CITY, CALIFORNIA, July 12, 2023 (GLOBE NEWSWIRE) -- SolarX, a ground-breaking crypto project, is set to revolutionize the cryptocurrency mining industry by harnessing the power of renewable energy sources. With its innovative and eco-friendly approach, SolarX aims to lead the way towards sustainable and responsible blockchain technology. The project will launch on the Ethereum Chain, providing users with a secure and transparent platform for mining cryptocurrencies.

Traditional cryptocurrency mining has long been associated with high energy consumption and its negative impact on the environment. SolarX recognizes this challenge and seeks to address it head-on by leveraging renewable energy sources, such as solar power, to fuel its mining operations on the Ethereum Chain. This innovative approach not only reduces the carbon footprint typically associated with mining, but it also promotes the adoption of clean energy solutions, driving the industry towards a more sustainable future.

SolarX's mining operations will be strategically located in regions abundant in solar energy resources. By tapping into these renewable sources, the project aims to minimize its reliance on non-renewable energy and substantially decrease its carbon emissions. Through the integration of cutting-edge technology and sustainability practices, SolarX envisions a future where crypto mining can coexist harmoniously with the planet's natural resources.

Key Features of the SolarX Project:

Renewable Energy-Powered Mining: SolarX will utilize solar power and other renewable energy sources to power its mining operations, significantly reducing carbon emissions and promoting sustainability.

Decentralized and Transparent: Built on the Ethereum Chain, SolarX operates within a decentralized framework, ensuring transparency, security, and immutability of transactions.

Community-Driven Governance: SolarX will empower its community by allowing token holders to actively participate in decision-making processes through decentralized governance mechanisms, ensuring a fair and inclusive ecosystem.

Eco-Friendly Staking: Users will have the opportunity to stake their SolarX tokens, further supporting the project's commitment to sustainability and earning rewards in return.

SolarX is driven by a team of experienced professionals who are passionate about both cryptocurrency and environmental sustainability. By combining their expertise, they aim to redefine the mining industry, fostering a more sustainable future for generations to come.

The SolarX token (SOLX) will be the native cryptocurrency of the SolarX ecosystem. It will serve as a utility token, enabling users to participate in the project's governance, access exclusive features, and benefit from various incentives.

The SolarX project will launch its token through a public sale, providing an opportunity for individuals to support the initiative and become part of the growing community committed to sustainable crypto mining.

For more information about SolarX and to stay updated on the project's latest developments, please visit the official resources:

Website:https://solarx.ai/Twitter:https://twitter.com/solarxcoinTelegram:http://t.me/solarxgroup

Join us in our mission to reshape the future of cryptocurrency mining, one sustainable block at a time.

About SolarX:SolarX is an innovative and eco-friendly crypto project that aims to revolutionize the landscape of cryptocurrency mining. By harnessing the power of renewable energy sources, SolarX seeks to reduce the carbon footprint associated with mining operations and pave the way for a more sustainable future. Built on the Ethereum Chain, SolarX is driven by a team of passionate professionals committed to promoting the adoption of clean energy solutions within the crypto industry.

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Introducing SolarX: Revolutionizing Cryptocurrency Mining with ... - GlobeNewswire

Cryptocurrency regulation, voted late last year in the Brazilian congress, has finally come into force this month, potentially a first step toward broader sector-focused legislation.

President Lula da Silva signed a decree establishing the central bank, a regional landmark for financial regulatory innovation in recent years, as the primary supervisor of the crypto economy. Now it will monitor and regulate all virtual asset providers in the country, with industry observers hoping it could lead the way in crypto regulation at a global level.

It is undoubtedly expected that crypto asset regulation will be greatly expanded in Brazil, particularly due to the central banks actions, Aylton Gonalves, Senior Associate at Opice Blum, Bruno Advogados Associados, told Fintech Nexus. Certainly, this initiative sets Brazil as an important jurisdiction within the global crypto economy landscape.

The central bank governor has been a vocal blockchain enthusiast, underscoring its capabilities to promote long-term innovation in the sector. The regulator itself is inching closer to launching its own central bank digital currency, the digital Real. It looks to launch an initial version by the end of next year.

The decree intends to empower the central bank to regulate and oversee the providers. Some, such as expert lawyer Nicole Dyskant, believe it reflects the governments strong commitment to the matter.

The overarching goal is to prevent scams related to cryptocurrency in Brazil. These have sadly proliferated in Brazil even as many lean into cryptocurrencies for legitimate purposes. Cryptocurrency specialists are confident it will contribute to regaining trust in the asset class, despite fintechs facing higher compliance costs.

A call to regulate the nascent industry has been on the rise globally, especially after the collapse of FTX and Signature Bank in the United States. The Central Bank in Brazil will certainly have the power to mitigate risks concerning virtual asset providers. Also, to prevent some of the circumstances we have seen in the U.S., Gonalves said.

The law creates a new specialized crime for fraud using virtual assets. It will carry a penalty of between two and six years of prison. It also stipulates the creation of a license for virtual service providers, for which companies in the sector, such as exchanges, must apply.

In Latin America, the lure of crypto goes beyond pure speculation. Several countries in the region have stood out in rankings as significant adopters of the technology. Here, crypto is a tool to hedge against currency depreciation in inflation hotspots or as a vehicle for cross-border transactions.

South American nations, surprisingly, have more crypto adoption per capita than much larger developed economies like the U.S. and EU, said a report by Bitfinex, a global crypto exchange. Despite being underserved by the traditional financial system, Latin America has a youthful population which is technically proficient, digitally savvy, online, and many of whom find employment remotely for U.S. and EU companies.

For Gonalves, the pros outweigh the cons. The new regulation will have a positive effect on the crypto market in Brazil, he said. Even though crypto firms will likely face greater scrutiny and costs, he argues that a robust framework would instill greater consumer confidence. This could lead to increased market penetration, he said.

David is a Latin American journalist. He reports regularly on the region for global news organizations such as The Washington Post, The New York Times, The Financial Times, and Americas Quarterly.

He has worked for S&P Global Market Intelligence as a LatAm financial reporter and has built expertise on fintech and market trends in the region.

He lives in Buenos Aires.

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Cryptocurrency regulation comes into force in Brazil - Fintech Nexus News