US federal authorities have filed for the forfeiture of $7.1 million in cryptocurrency seized in a criminal case linked to fraudulent investments in the oil and gas sector.
Forfeiture Action Filed
The US Attorney's Office in Seattle announced that it filed a forfeiture action to recover part of the $97 million accrued from an alleged fraudulent scheme operating between June 2022 and July 2024. Acting US Attorney Teal Luthy Miller stated that those accused moved illicit gains through various cryptocurrency accounts to launder money stolen from victims.
Charges Against Scheme Participants
Currently, one participant in the scheme, Geoffrey Auyeung, has been indicted for receiving a significant portion of the funds from the fraudulent investment project. He is accused of purchasing Bitcoin, Tether, USDC, and Ether with allegedly stolen funds and sending most of that cryptocurrency to the Binance exchange. Around $2.3 million was seized from his bank accounts at the time of his arrest.
Recent Regulatory Actions in Crypto Space
In recent weeks, regulators have intensified their crackdown on malicious actors in the cryptocurrency sector. Earlier this month, US prosecutors charged two men who promoted OmegaPro, allegedly defrauding investors of $650 million. Additionally, former rugby player Shane Donovan Moore was sentenced to two and a half years in federal prison for operating a $900,000 Ponzi scheme.
If the court approves the forfeiture request for $7.1 million, these funds would be distributed among the victims of the alleged scam, which are projected to amount to around $17.9 million.
