$100M Crypto Fraud Scheme Busted: Millions Recovered, Mastermind Jailed!

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Millions Recovered in Crypto as $100M Fraud Scheme Falls Apart

A federal fraud investigation resulted in the seizure of cryptocurrency after officials traced almost $100 million flowing through banks and exchanges. They’ve already seized $7.1 million in digital wallets connected to the fraud, and are pursuing an additional $24.7 million in restitution from those involved.

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

Those harmed by Auyeung are seeking $24.7 million in restitution, a process that is still ongoing in court. One victim flew in from the United Kingdom to be present at the sentencing and address Auyeung directly. The judge gave Auyeung a five-year prison sentence, emphasizing the extensive nature of his actions.

Auyeung lost more than just his freedom. Authorities seized $2.3 million in cash and funds from his accounts and home, including his Audi SQ8. He also agreed to hand over approximately $300,000 to pay back those he harmed.

The DOJ stated:

“He further agreed not to contest the civil forfeiture of some $7.1 million seized from various cryptocurrency wallets.”

Prosecutors claimed that Auyeung kept in touch with his partners in crime even after being charged and arrested. Between August 2024 and December 2025, he reportedly received an additional $400,000 in commissions, which were sent to accounts held by his wife.

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2026-06-12 03:57