Geoffrey K. Auyeung, a 47-year-old man from Newcastle, Washington, was sentenced to five years in federal prison for conspiracy to commit money laundering in connection with a cryptocurrency fraud scheme that defrauded victims of nearly $100 million. U.S. District Judge John C. Coughenour handed down the sentence in Seattle, emphasizing the scale of the fraud.
Prosecutors said that from June 2022 to July 2024, Auyeung's accounts received $97.1 million in wire transfers and other deposits, all believed to be fraud proceeds. Victims were lured with promises of legitimate investments in oil and gas storage, including facilities in Rotterdam and Houston, but the funds were quickly moved through at least 81 bank accounts across 24 financial institutions and 19 accounts on eight cryptocurrency exchanges.
Auyeung used exchanges like Gemini, Bitstamp, and Coinbase to convert fiat into Bitcoin, Ethereum, Tether (USDT), and USD Coin (USDC). Most of the crypto was then transferred to Binance accounts controlled by individuals in Nigeria and Russia. He also routed illicit fees through his wife’s bank accounts after his indictment, continuing to communicate with co-conspirators for 16 months following his arrest in August 2024.
First Assistant U.S. Attorney Neil Floyd said, "Mr. Auyeung facilitated a fraud… and even after he was indicted and arrested, Auyeung spent 16 months secretly still communicating with his co-conspirators and continuing to get his illicit fees by having the money go to his wife’s bank accounts. He showed utter disrespect for the law."
Auyeung earned at least $4 million in commissions, demanding higher payouts as he became more aware of the fraud. He agreed to forfeit about $2.3 million seized from bank accounts, an Audi SQ8, and roughly $7.1 million in crypto wallets, while also surrendering $300,000 toward restitution. Prosecutors are seeking $24.7 million in victim restitution, with the final amount to be determined by a magistrate judge. The case was investigated by Homeland Security Investigations and IRS Criminal Investigation.
