$7.1M in crypto may be returned to dozens of victims who lost money in a complex oil and gas investment scam powered by cryptocurrency.
The U.S. Attorney’s Office for the Western District of Washington announced efforts to forfeit crypto assets seized in the case. These funds were recovered during an ongoing investigation led by Homeland Security Investigations (HSI).
So far, investigators have recovered only 7% of the estimated $18 million stolen between June 2022 and July 2024. If the forfeiture is approved, the recovered assets will be distributed to identified victims.
How the Scam Worked
The scammers convinced victims to send money for a fake oil tank storage investment. They claimed the storage would be located in Rotterdam, Netherlands, or Houston, Texas, and promised profits from renting it out.
Once the victims transferred the funds, the scammers stopped communicating. Victims received no updates, contracts, or returns.
Investigators found that the criminals routed funds through at least 81 bank accounts, 19 different crypto wallets, and numerous offshore platforms. The stolen funds were converted into BTC, USDT, USDC, and ETH, then laundered via exchanges, including Binance.
Some assets were funneled through Russian and Nigerian crypto platforms allegedly used by transnational crime networks, including groups violating international sanctions.
Suspect Identified in Washington
Authorities charged Geoffrey K. Auyeung, 47, of Newcastle, Washington, with receiving stolen funds. Law enforcement seized $2.3 million from his bank accounts.
More Victims Expected
So far, prosecutors have identified dozens of victims, but they expect the number to grow. The case remains open, and law enforcement is tracking additional funds and individuals.
Conclusion
Although only a fraction has been recovered, $7.1M in crypto may be returned to victims of this oil and gas investment scam. The case highlights how criminals exploit cryptocurrency to commit fraud and hide stolen funds. Authorities continue working to recover more assets and identify additional victims.
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