US Feds to Seize $7.1 Million Crypto Tied to Oil Scam and Laundering Plot

According to a July 22 press release from the Seattle US Attorney’s Office, a civil complaint has been filed to recover part of the $97 million linked to the scheme, which is believed to have taken place between August 2022 and August 2024.

Acting US Attorney Teal Luthy Miller said, "The co-schemers in this fraud moved their ill-gotten gain through various cryptocurrency accounts to try to launder the money stolen from victims".

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The government stated that the accounts targeted for seizure belong to people based in Russia and Nigeria.

One of the main people charged in the case, Geoffrey Auyeung, was indicted in August 2024. He was accused of handling most of the money taken through the fake investment program.

Prosecutors said Auyeung used the funds to buy several types of cryptocurrency, including Bitcoin BTC $118,336.52 , Ethereum ETH $3,603.12 , USDT USDT $0.9993 , and USDC USDC $0.9991 , and sent most of it to Binance $13.99B . Authorities also seized $2.3 million from his bank accounts.

The Department of Justice said investors were told their money would be used to buy oil storage tanks that could be rented out for profit. But once the funds were received, those running the scheme reportedly stopped replying to the investors.

So far, officials have confirmed $17.9 million in losses. They believe that more victims will be identified over time and will be allowed to request repayment once their claims are verified.

Meanwhile, the Financial Conduct Authority (FCA) and the Metropolitan Police recently seized seven cryptocurrency kiosks and arrested two individuals in southwest London. How did the case unfold? Read the full story.