U.S. Files Forfeiture Motion for $1.14 Million Against Crypto Fraudster Austin Taylor
On Thursday, October 24, 2024, the United States government filed an unopposed motion for the forfeiture of property against Austin Michael Taylor in a case before the U.S. District Court for the Southern District of Florida. The motion seeks a forfeiture money judgment of $1,140,000, stemming from Taylor’s guilty plea to wire fraud charges.
The motion, submitted by Assistant U.S. Attorney Emily R. Stone, is based on 18 U.S.C. § 981(a)(1)(C), which allows for the forfeiture of property derived from criminal offenses. The legal proceedings against Taylor began when the government charged him with wire fraud on July 23, 2024. The case included allegations for forfeiture, asserting that any property derived from the proceeds of his fraudulent activities would be subject to forfeiture.
Taylor, a cybersecurity professional from Maryland, pleaded guilty to the charges on August 15, 2024. As part of his plea agreement, he accepted the forfeiture of the specified amount. The motion for forfeiture emphasizes that the funds in question were obtained through fraudulent schemes that misled investors regarding a cryptocurrency venture he promoted, initially called “CluShare” and later renamed “CluCoin.”
According to court documents, Taylor began soliciting investments in CluCoin during the early stages of the COVID-19 pandemic, leveraging his internet following to promote the cryptocurrency. He conducted an initial coin offering (ICO) on May 19, 2021, during which investors exchanged established cryptocurrencies for CluCoin tokens. Taylor assured investors that their funds would be used for charitable projects and other business ventures related to CluCoin. However, evidence presented in the case indicated that he diverted approximately $1.14 million of investor funds to online gambling, contrary to his representations.
The court’s motion outlines the legal framework for criminal forfeiture, stating that any property related to the commission of wire fraud is subject to seizure. The government maintains that the preliminary order of forfeiture should be issued without regard for any third-party claims to the property. The order would be made in advance of sentencing to allow for any modifications before it becomes final.
The court is required to include the forfeiture in Taylor’s final sentencing, ensuring that he is aware of the forfeiture order at that time. The prosecution’s memorandum of law also establishes that the forfeiture judgment does not require the government to prove the defendant’s financial ability to satisfy the judgment at the time of sentencing.
Court records reveal that following the ICO, the value of CluCoin significantly declined, prompting Taylor to shift his focus from charitable endeavors to various online business projects, including non-fungible tokens (NFTs) and a computer game. This shift, along with a public admission of his gambling addiction, led to further scrutiny of his financial dealings.
The United States seeks to retrieve the full amount of funds traceable to Taylor’s fraudulent activities to uphold the integrity of criminal forfeiture laws.
Please contact BlockTribune for access to a copy of this filing.
