The U.S. Attorney's Office for the Western District of Washington has filed a civil forfeiture action targeting $7.1 million in cryptocurrency seized by the Department of Homeland Security in December 2023. The funds are linked to an alleged transnational oil and gas investment fraud that operated from June 2022 to July 2024, defrauding victims of approximately $97 million.
Acting U.S. Attorney Teal Luthy Miller stated that co-conspirators moved illicit gains through cryptocurrency accounts to launder money stolen from victims. The targeted crypto accounts belong to individuals in Russia and Nigeria who allegedly used victim funds to purchase cryptocurrencies including Bitcoin (BTC), Tether (USDT), USD Coin (USDC), and Ethereum (ETH), then transferred portions to exchanges in their home countries.
Geoffrey Auyeung was indicted in August 2024 for allegedly receiving most fraud proceeds, converting them into crypto assets, and transferring them to Binance. Authorities previously seized $2.3 million from his bank accounts. Prosecutors have identified victims defrauded of $17.9 million so far, with more expected to emerge.
If approved, the forfeiture would bring total recovered funds to $9.4 million for victim restitution. This case aligns with recent regulatory crackdowns, including charges against promoters of a $650M scam and a prison sentence for a $900,000 crypto Ponzi scheme operator.