US prosecutors are moving to seize $7.1 million in cryptocurrency linked to an alleged oil and gas investment scam that duped investors out of nearly $97 million over two years.
The Seattle US Attorney’s Office filed a civil action on Tuesday to forfeit the funds, which were among the proceeds of a fraudulent scheme that ran from June 2022 until July 2024. Acting US Attorney Teal Luthy Miller said the defendants tried to hide the stolen money by funnelling it through multiple cryptocurrency accounts.
Source: US DOJ
According to prosecutors, those accounts were controlled by individuals in Russia and Nigeria who used victims’ funds to purchase digital assets, later transferring portions to exchanges in their home countries. Authorities allege that at least one of the conspirators, Geoffrey Auyeung, acted as a money launderer for transnational criminal networks.
Auyeung, who was indicted in August 2024, allegedly received the bulk of the stolen funds, using them to buy Bitcoin, Tether, USD Coin, and Ether before transferring most of the crypto to Binance. At the time of his arrest, nearly $2.3 million was seized from his bank accounts.
The Justice Department said victims were enticed with promises of lucrative returns from investments in oil tank storage facilities, purportedly to be rented out for substantial profits. However, once investors sent their money, the alleged fraudsters cut off communication.
So far, prosecutors have identified victims defrauded of at least $17.9 million and expect more to come forward as investigations continue. If the court approves the government’s forfeiture request, the total reclaimed funds would rise to $9.4 million, which would be distributed to verified victims.
The case forms part of a wider crackdown on crypto-related fraud. Earlier this month, US prosecutors charged two OmegaPro promoters accused of running a $650 million scam, facing up to 40 years in prison if convicted. On Friday, former rugby player Shane Donovan Moore was sentenced to two and a half years in federal prison for a $900,000 Ponzi scheme targeting over 40 investors.
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