Former SEC chairman presides over the Southern District Court of New York, sternly condemning a $12 million Crypto Assets fraud case.

Source: Cointelegraph Original text: "Former SEC Chairman presides over Southern District Court of New York, sternly condemning $12 million cryptocurrency fraud case"

Jay Clayton, who was recently appointed as the Acting U.S. Attorney for the Southern District of New York (SDNY) and previously served as the Chairman of the U.S. Securities and Exchange Commission, has begun making statements regarding criminal cases involving cryptocurrency fraud.

In a statement on April 23, the U.S. Attorney's Office announced that Eugene William Austin, also known as Hugh Austin, was sentenced to 18 years in prison after being convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to transport stolen property across state lines. His son Brandon was also sentenced to 4 years in prison. The Austin father and son provided fraudulent cryptocurrency investment services, resulting in losses of approximately $12 million for over 24 victims.

"For many years, Hugh Austin has been the mastermind behind a fraud and money laundering scheme, defrauding over $12 million from more than twenty victims," Clayton said. "Austin involved his son in the crimes, deceiving victims together and using investors' funds for personal expenses such as luxury hotels... Austin will now be held accountable for the harm he has caused to individual investors and others."

This criminal case involving digital assets marks the first public statement made by Clayton since he assumed the role of Acting U.S. Attorney on April 22. President Trump nominated Clayton when he took office on January 20. Subsequently, Acting U.S. Attorney Danielle Sassoon resigned after being instructed by the Department of Justice to stop the investigation into New York City Mayor Eric Adams.

Is the country's "sovereign territory" controlled by Trump's appointees?

Under current law, Clayton can serve as the acting U.S. Attorney for the district for 120 days without Senate confirmation. Senate Minority Leader Chuck Schumer blocked a vote on Clayton's nomination, stating that Trump "has no loyalty to the law."

Clayton is likely to continue serving as the U.S. Attorney for the Southern District of New York during the sentencing hearing of former Celsius CEO Alex Mashinsky and may be responsible for other criminal cases involving cryptocurrencies. This district is home to Wall Street firms and many of the most influential financial institutions in the United States.

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