Nikolas Sargeant
TL;DR
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Geoffrey K. Auyeung, a 47-year-old Washington resident, helped overseas fraudsters launder nearly $100 million in scam proceeds through crypto and bank accounts.
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The DOJ stated that victims were deceived into believing they were investing in the oil and gas industry.
DOJ Says Defendant Helped Move Funds From International Fraud Scheme
A 47-year-old Newcastle, Washington resident has been sentenced to five years in federal prison for conspiracy to commit money laundering after helping overseas fraudsters move nearly $100 million in proceeds from investment scams.
According to a Tuesday statement from the U.S. Department of Justice, Geoffrey K. Auyeung played a key role in a large-scale scheme that funneled investor funds through U.S. bank accounts and cryptocurrency exchanges before routing them offshore.
Prosecutors said the fraud scheme targeted victims with promises of lucrative investments in the oil and gas sector.
Co-conspirators allegedly convinced investors to transfer money into supposed escrow accounts intended for the purchase of oil storage tank assets in multiple locations. Victims were told the investments would generate substantial returns.
However, authorities say the escrow accounts were fraudulent, and the funds were quickly diverted once deposited.
$97 Million Moved Through Banks and Crypto Exchanges
The DOJ said Auyeung established at least nine shell entities designed to receive victim funds. Between August 2022 and August 2024, these accounts processed approximately $97.1 million in wire transfers and deposits tied to the scheme.
Once received, the money was rapidly moved between accounts, sent overseas, or converted into cryptocurrencies, including Bitcoin, Ethereum, USDT, and USDC.
The digital assets were then transferred through major exchanges such as Gemini, Coinbase, and Bitstamp before ultimately being routed to Binance accounts controlled by individuals in Nigeria and Russia, according to prosecutors.
Investigators say Auyeung opened at least 81 bank accounts across 24 financial institutions, along with 19 accounts on eight cryptocurrency exchanges, all used to facilitate the movement of illicit funds.
Officials described the operation as a complex laundering network designed to obscure the origin of stolen investor money and prevent detection by financial institutions.
For his role in the scheme, Auyeung allegedly received at least $4 million in commission payments.
Prosecutors further stated that even after being indicted, he continued participating in the operation using accounts opened in his wife’s name, collecting an additional $400,000 between August 2024 and December 2025.
Auyeung was arrested in August 2024 and pleaded guilty in February. Alongside his prison sentence, he has agreed to significant financial penalties and asset forfeiture.
Authorities say he will forfeit approximately $2.3 million seized from bank accounts and property, including an Audi SQ8, as well as roughly $7.1 million in cryptocurrency and about $300,000 in additional bank holdings.
The government has also sought more than $24 million in restitution for victims affected by the scheme.
Officials say the case highlights the continued use of cryptocurrency and offshore accounts in large-scale investment fraud and money laundering operations.
