US Seizes $7.1 Million in Crypto from Fraud Scheme

U.S. prosecutors are in pursuit of $7.1 million worth of cryptocurrency linked to an oil and gas investment scam. The U.S. Attorney's Office for the Western District of Washington filed a civil action on Tuesday to retrieve these funds. Acting U.S. Attorney Miller stated, "The co-schemers in this fraud transferred their ill-gotten gains through various cryptocurrency accounts in an attempt to launder money stolen from victims. Federal investigators and prosecutors acted swiftly to trace and seize the cryptocurrency, ensuring that some losses could be returned to the victims." Geoffrey K. Auyeung, 47, who is believed to be the mastermind behind the scheme, was indicted in 2024 on several money laundering charges. Prosecutors allege he and his associates convinced victims to send money to what was falsely represented as escrow accounts for purchasing oil tank storage in Rotterdam, Netherlands, or Houston, promising returns from renting out these storage tanks. However, instead of being used as promised, the funds were transferred to 81 different accounts, moved offshore, or funneled into 19 crypto accounts to acquire assets like bitcoin, USDT, USDC, and ETH. Approximately $2.3 million were recovered from Auyeung's bank accounts at the time of his arrest, according to prosecutors. Disclaimer: The Block is an independent media outlet providing news and information. As of November 2023, Foresight Ventures is a primary investor in The Block, which operates independently to deliver neutral and timely updates regarding the crypto industry.