The U.S. Attorney’s Office in the Western District of Washington has initiated a civil action to forfeit a substantial sum of cryptocurrency, approximately $7.1 million, which has been linked to an oil and gas storage fraud scheme. Acting U.S. Attorney Teal Luthy Miller announced the lawsuit, aiming to claw back a portion of the $97 million defrauded from investors between June 2022 and July 2024, details of which emerged after a Homeland Security Investigations operation in December 2024. "The co-schemers in this fraud moved their ill-gotten gain through various cryptocurrency accounts to try to launder the money stolen from victims," Miller said in a statement as reported by the U.S. Attorney’s Office.
Geoffrey K. Auyeung, 47, of Newcastle, Washington, was indicted last August as an alleged key player in the U.S. who received a large portion of the fraudulent funds. The laundered money rapidly transitioned through an array of at least 81 different financial accounts, or made its way offshore, and into no less than 19 cryptocurrencies accounts. Such high-velocity movement of funds was typical in their use for purchasing digital currencies like Bitcoin and Ethereum, with much of the assets further moved to Binance exchange accounts, a hub known for its extensive crypto-transfer capabilities.
In a closer look at the forfeiture filing, it is apparent that the seized cryptocurrency accounts bear connections to individuals situated in Russia and Nigeria. Some of the cryptocurrencies purchased with the victims' funds were funneled to exchanges in these countries, including some that the filing alleges have been complicit in laundering money for disreputable transnational organizations. These organizations reportedly span the gamut from terrorist groups to others flouting global trade sanctions.
At the point when Auyeung was apprehended and charged, authorities also confiscated around $2.3 million from his bank accounts. The $7.1 million in cryptocurrency the government is now targeting comes in addition to the money already seized. Should the court give the green light to the forfeiture, the funds will be allocated back to the identified victims, who up to this point have been swindled of an estimated $17.9 million. Although dozens have been recognized as victims, officials expect this number will increase as the investigation proceeds and more individuals come forward.
The ongoing case sees the collaborative efforts of Homeland Security Investigations (HSI) with Assistant United States Attorneys Jehiel Baer and Yunah Chung at the prosecution wheel. Their work continues to unravel the vast web spun by the co-conspirators in this sophisticated scheme, utilizing the anonymity and agility of cryptocurrencies to obscure and propel their illicit gains far from the reach of their rightful owners.
