Federal prosecutors sentenced Geoffrey K. Auyeung to five years in prison and seized $7.1 million in cryptocurrency tied to a $100 million investment fraud scheme, the U.S. Attorney's Office for the Western District of Washington announced on June 9, 2026. Auyeung orchestrated a scheme involving fake oil and gas storage investments in Rotterdam and Houston, moving victim funds through 81 bank accounts and 19 cryptocurrency exchange accounts before converting them into bitcoin, tether, USD coin, and ethereum via Gemini, Bitstamp, and Coinbase, with transfers ultimately reaching Binance. The fraud operated between June 2022 and July 2024, during which $97.1 million in wire transfers and deposits passed through accounts Auyeung controlled, with cryptocurrency serving as a key laundering channel after victims sent funds to purported escrow accounts.
Auyeung Moved $97.1 Million Through Crypto Exchanges and Bank Accounts
Investigators traced the scheme to purported oil and gas storage investments in Rotterdam, Netherlands, and Houston. Victims sent funds to accounts they believed served as escrow vehicles, the Department of Justice (DOJ) detailed.
Once received, "the money was quickly moved into other accounts, moved offshore, or was used to purchase cryptocurrencies, including bitcoin, tether, USD coin, and ethereum, via cryptocurrency exchanges such as Gemini, Bitstamp, and Coinbase," the DOJ noted. "Much of the cryptocurrency was further transferred to accounts at the cryptocurrency exchange Binance."
Prosecutors stated: "Nearly $100 million in fraud proceeds passed through bank accounts he set up and linked to cryptocurrency exchanges."
Court records indicate Auyeung opened at least 81 bank accounts across 24 financial institutions. He also opened 19 accounts across eight cryptocurrency exchanges. Between June 2022 and July 2024, those accounts received $97.1 million in wire transfers and third-party deposits.
Authorities described crypto as a key laundering channel rather than the original sales pitch. The alleged fraud centered on fake oil tank storage opportunities. Crypto entered the case after victim funds reached Auyeung-controlled accounts and moved through exchanges, offshore accounts, and addresses tied to overseas co-conspirators.
DOJ Seized $7.1 Million in Crypto and Forfeited $2.3 Million in Assets
Victims face a restitution process still moving through court, with prosecutors seeking $24,707,031. One victim traveled from the United Kingdom to attend sentencing and confront Auyeung. The court cited the scale of the conduct while imposing the five-year prison term.
Auyeung's financial exposure extends beyond imprisonment. He forfeited about $2.3 million in funds and cash seized from bank accounts and his home, along with an Audi SQ8. He also agreed to relinquish roughly $300,000 in bank funds toward restitution.
The DOJ stated: "He further agreed not to contest the civil forfeiture of some $7.1 million seized from various cryptocurrency wallets."
Prosecutors also alleged Auyeung continued communicating with co-conspirators after indictment and arrest. From August 2024 through December 2025, he accepted another $400,000 in commissions routed through accounts in his wife's name, according to the government.
FAQ
What did Geoffrey K. Auyeung do in the $100 million fraud scheme?
Geoffrey K. Auyeung orchestrated a fraud scheme involving fake oil and gas storage investments in Rotterdam and Houston. He moved $97.1 million in victim funds through 81 bank accounts and 19 cryptocurrency exchange accounts, converting funds into bitcoin, tether, USD coin, and ethereum via Gemini, Bitstamp, and Coinbase before transferring them to Binance.
How much cryptocurrency did the DOJ seize from Auyeung?
The DOJ seized $7.1 million from cryptocurrency wallets connected to the fraud scheme. Auyeung also forfeited about $2.3 million in funds and cash seized from bank accounts and his home, along with an Audi SQ8, and agreed to relinquish roughly $300,000 in bank funds toward restitution.
When did the fraud scheme operate and when was Auyeung sentenced?
The fraud scheme operated between June 2022 and July 2024. The U.S. Attorney's Office for the Western District of Washington announced Auyeung's five-year prison sentence on June 9, 2026.
