The U.S. Department of Justice continues its crackdown on cryptocurrency fraud, filing for the forfeiture of $7.1 million linked to an oil and gas storage fraud.
Fraud Scheme
The U.S. Attorney’s Office in the Western District of Washington filed a civil action on Tuesday, demanding the forfeiture of cryptocurrency assets valued at approximately $7.1 million. These funds were seized during an investigation into a scheme involving fraudulent investments in the oil and gas sector. Acting U.S. Attorney Teal Luthy Miller announced that co-conspirators obtained $97 million between June 2022 and July 2024. The scheme aimed to trick investors into sending money to escrow accounts under the pretense of renting oil storage tanks.
Funds Movement
Geoffrey K. Auyeung, 47, was indicted as a co-conspirator and is suspected of receiving the majority of the funds generated by the deceptive scheme. The money was quickly shuffled into 81 accounts across various financial institutions and 19 different crypto accounts, including Bitcoin, USDT, USDC, and Ethereum. Some assets were transferred to Binance exchange accounts. The forfeiture filing states that the crypto accounts were linked to individuals in Russia and Nigeria, suspected of financial manipulations.
Consequences and Next Steps
At the time of Auyeung’s arrest, $2.3 million was seized from his bank accounts, adding to the $7.1 million being sought for forfeiture. If the court approves the forfeiture, funds will be returned to victims. Investigators have identified dozens of such cases, with the total exploitation amounting to approximately $17.9 million. This figure may increase as more victims are identified.
The investigation continues, and federal authorities are considering further action against participants in the scheme. The asset seizure will represent a critical step toward compensating the victims.
