A federal fraud case led to major crypto seizures after prosecutors said nearly $100 million moved through bank accounts and exchanges. Authorities seized some $7.1 million from digital wallets tied to the scheme, while prosecutors separately seek $24,707,031 in restitution.
Key Takeaways:
- Authorities seized $7.1 million from cryptocurrency wallets connected to the fraud scheme.
- Nearly $100 million moved through 19 accounts on eight cryptocurrency exchanges and 81 bank accounts.
- Digital assets were purchased through Gemini, Bitstamp, and Coinbase before transfers reached Binance.
Crypto Seizures Show How Fraud Proceeds Moved Through Digital Markets
Millions of dollars in cryptocurrency tied to a $100 million investment fraud scheme have been seized as federal prosecutors secured a five-year prison sentence for Geoffrey K. Auyeung, according to the U.S. Attorney’s Office for the Western District of Washington on June 9, 2026.
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.
Seized Crypto Assets Highlight Path Toward Victim Recovery Efforts
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.