Federal prosecutors have seized millions of dollars in cryptocurrency tied to a $100 million investment fraud scheme, after securing a five-year prison sentence for the scheme’s operator. The U.S. Attorney’s Office for the Western District of Washington announced the developments on June 9, 2026.
Geoffrey K. Auyeung, the individual at the center of the case, received his sentence following a probe that uncovered how victim funds were funneled through a network of bank accounts and cryptocurrency exchanges. According to the Department of Justice, the fraud centered on fake oil and gas storage investments, with victims sending money to accounts they believed were legitimate escrow vehicles for deals in Rotterdam, Netherlands, and Houston.
Crypto as a Laundering Channel
Once the funds arrived, they were quickly moved. The DOJ detailed that money was shifted into other accounts, sent offshore, or used to purchase cryptocurrencies like bitcoin, tether, USD coin, and ether. These purchases were made through exchanges such as Gemini, Bitstamp, and Coinbase. Much of the cryptocurrency was then transferred further, often to accounts on Binance.
Court records show Auyeung opened at least 81 bank accounts across 24 financial institutions. He also set up 19 accounts on eight different cryptocurrency exchanges. Between June 2022 and July 2024, those accounts received about $97.1 million through wire transfers and third-party deposits. Prosecutors described crypto as a key laundering channel rather than part of the original sales pitch. The alleged fraud itself was about fake oil tank storage opportunities, not digital assets.
Seized Assets and Victim Recovery
Authorities have seized significant assets. Auyeung forfeited roughly $2.3 million from bank accounts and cash found at his home, along with an Audi SQ8. He also agreed to give up about $300,000 in bank funds toward restitution. The DOJ said he agreed not to contest the civil forfeiture of some $7.1 million seized from various cryptocurrency wallets.
Prosecutors are separately seeking $24,707,031 in restitution. One victim reportedly traveled from the United Kingdom to attend the sentencing and confront Auyeung. The court considered the scale of the conduct when imposing the five-year prison term.
Continued Activity After Indictment
The case also revealed that Auyeung allegedly kept communicating with co-conspirators even after his indictment and arrest. According to the government, between August 2024 and December 2025, he accepted another $400,000 in commissions. These funds were routed through accounts held in his wife’s name. This continued activity adds another layer to an already complicated financial trail that prosecutors are still untangling.
The seizure of these crypto assets offers a path toward victim recovery, though the restitution process remains ongoing in court. For now, the case serves as a reminder of how traditional fraud schemes can intersect with digital markets, using crypto as a tool to obscure the movement of stolen funds.
