DOJ Seeks to Return Millions in Crypto to Alleged Victims of $97M Oil and Gas Scheme
A Washington State man, Geoffrey Auyeung, has been indicted for laundering proceeds from a fraudulent oil and gas investment scheme, with federal prosecutors seeking to recover $7.1 million in cryptocurrency for victims. The scheme involved a $97 million fraud promising profits from leasing oil tank storage in Houston and Rotterdam. Victims sent money to shell companies posing as escrow agents, including Sea Forest International and Apex Oil and Gas Trading. Auyeung allegedly laundered funds through U.S. banks, foreign accounts, and at least 19 cryptocurrency wallets linked to IP addresses in Russia and Nigeria. The case underscores the increasing use of cryptocurrency in international fraud and the Justice Department's reliance on blockchain tracing to recover assets. Auyeung reportedly controlled fake companies to obscure the source of funds, moving victim deposits through over 80 bank accounts and nearly 20 crypto wallets, converting proceeds into Bitcoin, Ethereum, Tether, and USD Coin. Transactions were traced to U.S.-based exchanges like Gemini and Binance, as well as accounts linked to entities involved in money laundering for terrorist groups.
