Auyeung’s Oil & Gas Scam: $7.1M Crypto Seized

SEATTLE – A $7.1 million cryptocurrency haul has been targeted for forfeiture by federal authorities as the fallout from a brazen oil and gas investment fraud scheme continues. The U.S. Attorney’s Office, Western District of Washington, filed a civil action today seeking the crypto, seized in December 2024, stemming from a scam that bilked investors out of an estimated $97 million between June 2022 and July 2024. Acting U.S. Attorney Teal Luthy Miller announced the action, promising a return of funds to defrauded victims.

“The co-schemers in this fraud moved their ill-gotten gain through various cryptocurrency accounts to try to launder the money stolen from victims,” Miller stated bluntly. “Federal investigators and prosecutors in our office moved as quickly as possible to trace and seize the cryptocurrency so that some of the losses can be returned to victims.” The scheme lured investors with promises of high returns from oil tank storage rentals in Rotterdam and Houston. Victims were directed to send funds to shell companies including Sea Forest International LLC; Apex Oil and Gas Trading LLC; Navigator Energy Logistics LLC; Terminal Energy International Escrow Service LLC; Energo Horizons Logistics (EA) LLC; Legacy Energy Logistics Transport Group LLC; and Green Tree Gateway LLC. Once the money landed in these accounts, it vanished – along with any communication from the schemers.

At the center of the U.S. operation is Geoffrey K. Auyeung, 47, of Newcastle, Washington, indicted in August 2024. He’s accused of receiving a substantial portion of the fraud proceeds. Investigators discovered the money rapidly dispersed – funneled through at least 81 different bank accounts, moved offshore, and laundered through a network of 19 cryptocurrency accounts. The purchases included Bitcoin, Tether, USD Coin, and Ethereum, with a significant portion routed through the Binance exchange. This wasn’t a simple transfer; it was a deliberate attempt to bury the stolen funds in the murky world of digital currency.

The seized cryptocurrency accounts weren’t just domestic. Federal investigators traced links to individuals in Russia and Nigeria. Alarmingly, some of the funds purchased with victim money ended up on cryptocurrency exchanges in those same countries, including platforms allegedly used to facilitate money laundering for transnational criminal organizations – even those linked to terrorist groups and sanctions violations. The investigation reveals a potential nexus between this financial fraud and far more dangerous international activities.

This $7.1 million forfeiture action is in addition to the $2.3 million already seized from Auyeung’s bank accounts at the time of his arrest. Federal investigators have so far identified dozens of victims who were defrauded out of approximately $17.9 million, but they anticipate that number will climb as the investigation continues and more victims come forward. The government intends to distribute the forfeited funds to those who lost money in the scam, offering a small measure of restitution.

The case is being spearheaded by Homeland Security Investigations (HSI), with prosecution led by Assistant United States Attorneys Jehiel Baer and Yunah Chung. The Grimy Times will continue to follow this case as it develops, exposing the individuals and networks profiting from the misery of others. Expect further revelations as investigators peel back the layers of this complex financial scheme.”

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