The U.S. government is taking steps to seize $7.1 million in cryptocurrency connected to a major investment fraud scheme in the oil and gas sector. Scammers collected $97 million from investors.
Fraud Allegations
According to the Seattle U.S. Attorney’s Office, the funds were seized by Homeland Security in December 2024. Victims were assured that their money would go toward the construction of oil storage facilities, promising high returns. However, after sending funds, the perpetrators ceased to respond.
CITE_W_A: "The co-schemers in this fraud moved their ill-gotten gain through various cryptocurrency accounts to try to launder the money stolen from victims," said Acting U.S. Attorney Teal Luthy Miller.
Global Money Laundering Scheme
The fraud quickly morphed into a global money laundering operation. Prosecutors claim that victims’ money was used to purchase Bitcoin, Tether, USDC, and Ether, which were then moved through accounts linked to individuals in Russia and Nigeria. A significant portion of the stolen cryptocurrency was reportedly sent to Binance, the world’s largest crypto exchange.
Accountability for the Fraud
So far, one individual, Geoffrey Auyeung, has been indicted. He was charged in August 2024 for receiving the majority of the stolen funds and converting them into cryptocurrency. At the time of his arrest, U.S. officials also seized $2.3 million from his bank accounts.
The effort to recover stolen funds continues, with losses estimated to reach $17.9 million. This case is part of broader actions being taken against cryptocurrency fraud, indicating increasing vigilance from international law enforcement agencies.
