Federal prosecutors in Seattle are pursuing the forfeiture of $7.1 million in cryptocurrency linked to a fraudulent oil and gas investment scam that duped victims out of $97 million between June 2022 and July 2024.
The funds, seized by Homeland Security in December, were allegedly laundered through crypto accounts tied to individuals in Russia and Nigeria, with one suspect already indicted for money laundering.
How the oil and gas investment scam operated
The scheme promised investors lucrative returns by claiming to purchase and lease oil tank storage facilities. Victims were told their funds would generate steady profits, but prosecutors allege the operators abruptly cut contact after receiving payments.
“The co-schemers moved their ill-gotten gains through various cryptocurrency accounts to launder the money stolen from victims,” — Acting US Attorney Teal Luthy Miller, in a statement.
Investigators say the accused used victims’ money to buy Bitcoin (BTC), Tether (USDT), USD Coin (USDC), and Ether (ETH), funneling much of it to Binance and offshore exchanges.
US seeks to reclaim $7.1M in crypto tied to oil and gas investment scam
Key suspect indicted in transnational laundering case
Geoffrey Auyeung, arrested in August 2024, allegedly received the majority of the scam’s proceeds. US authorities seized $2.3 million from his bank accounts and tied him to transferring crypto to exchanges in Russia and Nigeria.
“Auyeung’s role was critical in disguising the origins of the stolen funds,” a Justice Department spokesperson noted.
The oil and gas investment scam targeted unsuspecting investors, with at least $17.9 million definitively traced to victims so far. Prosecutors expect more claims as additional victims are identified.
Forfeiture efforts and victim restitution
If approved, the $7.1 million forfeiture would bring total recovered funds to $9.4 million, earmarked for victim compensation. The civil action underscores the US government’s push to hold fraudsters accountable in crypto-related crimes.
“This case highlights how crypto can be exploited in complex frauds, but also how law enforcement is adapting,” said a Homeland Security Investigations (HSI) representative.
US seeks to reclaim $7.1M in crypto tied to oil and gas investment scam
Broader crackdown on crypto fraud
The oil and gas investment scam is part of a wider trend of high-profile crypto crackdowns:
Two OmegaPro promoters were charged earlier this month for a $650 million fraud.
Ex-rugby player Shane Moore received a 2.5-year sentence for a $900,000 Ponzi scheme.
Hong Kong police arrested four individuals in a separate $382,000 crypto scam.
Regulators are increasingly targeting cross-border schemes, with the Seattle case serving as a benchmark for recovering illicit crypto assets.
Key points
The oil and gas investment scam defrauded victims of $97 million, with $7.1M in crypto now sought for forfeiture.
Suspect Geoffrey Auyeung allegedly laundered funds through Binance and offshore exchanges.
US authorities are intensifying efforts to reclaim stolen crypto and compensate victims.
Olivia Jackson is a US-based cryptocurrency writer and market analyst with a passion for decoding the complexities of blockchain technology and digital assets. With over five years of experience covering the crypto space, she specializes in breaking down market trends, regulatory developments, and emerging Web3 innovations for both retail and institutional audiences.
Her work has appeared in leading finance and tech publications, including CoinDesk, Decrypt, and The Block, where she provides data-driven insights on Bitcoin, DeFi, and the evolving regulatory landscape. Olivia is particularly interested in the intersection of traditional finance and decentralized systems, often exploring how macroeconomic shifts impact crypto markets.
