The U.S. Attorney’s Office, Western District of Washington, today filed a civil action seeking the forfeiture of cryptocurrency valued at approximately $7.1 million seized in the investigation of an oil and gas-related investment fraud scheme, announced acting U.S. Attorney Teal Luthy Miller.
The funds, part of approximately $97 million collected by the coconspirators between June 2022 and July 2024, were seized by Homeland Security Investigations in December 2024.
“The co-schemers in this fraud moved their ill-gotten gain through various cryptocurrency accounts to try to launder the money stolen from victims,” said Acting U.S. Attorney Miller. “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.”
According to the forfeiture filing and other records in the case, from at least August 2022 through August 2024, the co-schemers convinced victims to send money to what was represented as escrow accounts to purchase oil tank storage in either Rotterdam, Netherlands, or Houston.
The schemers indicated that the investors could make significant profits by renting the oil tank storage they obtained to others. The victims sent money to accounts linked to the following entities: 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.
However, once victims sent their money, they received no further information on their investment, and the co-schemers simply stopped responding.
Newcastle, Washington, resident Geoffrey K. Auyeung, 47, was indicted in August 2024 as a coconspirator in the U.S. who is charged with receiving a significant portion of the fraud proceeds generated by the scheme.
The money was quickly transferred to one or more of at least 81 different accounts at financial institutions, moved offshore, or deposited into one or more of at least 19 different cryptocurrency accounts, where it was used to purchase cryptocurrencies, including Bitcoin, Tether, USD Coin, and Ethereum. A significant portion of the cryptocurrency was subsequently transferred to accounts at the cryptocurrency exchange Binance.
According to the forfeiture filing, the cryptocurrency accounts that were seized were linked to individuals in Russia and Nigeria. Some of the cryptocurrency purchased with victims’ funds was also sent to cryptocurrency exchanges in Russia and Nigeria, at least one of which is alleged to have facilitated money laundering for transnational criminal organisations, including terrorist organisations and organisations that violate international trade sanctions.
At the time of Auyeung’s arrest and indictment, some $2.3 million was seized from his bank accounts. The $7.1 million in cryptocurrency the government is seeking to forfeit is in addition to the $2.3 million already seized.
Should the court approve the forfeiture, the money will be distributed to the victims in the case. Currently, investigators have identified dozens of victims who were defrauded out of approximately $17.9 million. Investigators believe those numbers will continue to grow as more victims are identified and verified.
