Key Takeaways
Authorities seized $7.1 million from cryptocurrency wallets linked to the fraud scheme.Practically $100 million moved by way of 19 accounts on eight cryptocurrency exchanges and 81 financial institution accounts.Digital property have been bought by way of Gemini, Bitstamp, and Coinbase earlier than transfers reached Binance.
Crypto Seizures Present How Fraud Proceeds Moved By way of Digital Markets
Hundreds of thousands of {dollars} in cryptocurrency tied to a $100 million funding fraud scheme have been seized as federal prosecutors secured a five-year jail sentence for Geoffrey Ok. Auyeung, in accordance with the U.S. Legal professional’s Workplace for the Western District of Washington on June 9, 2026.
Investigators traced the scheme to purported oil and gasoline storage investments in Rotterdam, Netherlands, and Houston. Victims despatched funds to accounts they believed served as escrow automobiles, the Division of Justice (DOJ) detailed.
As soon as obtained, “the cash was shortly moved into different accounts, moved offshore, or was used to buy cryptocurrencies, together with bitcoin, tether, USD coin, and ethereum, by way of cryptocurrency exchanges similar to Gemini, Bitstamp, and Coinbase,” the DOJ famous. “A lot of the cryptocurrency was additional transferred to accounts on the cryptocurrency alternate Binance.”
Prosecutors acknowledged:
“Practically $100 million in fraud proceeds handed by way of financial institution accounts he arrange and linked to cryptocurrency exchanges”
Courtroom data point out Auyeung opened at the least 81 financial institution accounts throughout 24 monetary establishments. He additionally opened 19 accounts throughout eight cryptocurrency exchanges. Between June 2022 and July 2024, these accounts obtained $97.1 million in wire transfers and third-party deposits.
Authorities described crypto as a key laundering channel fairly than the unique gross sales pitch. The alleged fraud centered on faux oil tank storage alternatives. Crypto entered the case after sufferer funds reached Auyeung-controlled accounts and moved by way of exchanges, offshore accounts, and addresses tied to abroad co-conspirators.
Seized Crypto Property Spotlight Path Towards Sufferer Restoration Efforts
Victims face a restitution course of nonetheless shifting by way of court docket, with prosecutors in search of $24,707,031. One sufferer traveled from the UK to attend sentencing and confront Auyeung. The court docket cited the dimensions of the conduct whereas imposing the five-year jail time period.
Auyeung’s monetary publicity extends past imprisonment. He forfeited about $2.3 million in funds and money seized from financial institution accounts and his residence, together with an Audi SQ8. He additionally agreed to relinquish roughly $300,000 in financial institution funds towards restitution.
The DOJ acknowledged:
“He additional agreed to not contest the civil forfeiture of some $7.1 million seized from numerous cryptocurrency wallets.”
Prosecutors additionally alleged Auyeung continued speaking with co-conspirators after indictment and arrest. From August 2024 by way of December 2025, he accepted one other $400,000 in commissions routed by way of accounts in his spouse’s title, in accordance with the federal government.