Washington State Initiates Civil Proceedings to Seize $7.1 Million in Crypto asset Linked to Global Fraud Operation

Washington State has taken decisive action against a fraud scheme associated with digital currency, moving to recover $7.1 million in digital assets linked to a global oil storage scam. This operation attracted investors with enticing promises of impressive returns, but the reality is that it was all a façade.

Supported by the Department of Justice and Homeland Security Investigations, this civil lawsuit aims at crypto wallets purportedly involved in laundering crypto holder money. The primary suspect, Geoffrey K. Auyeung, is already facing criminal charges and risks spending up to 200 years in prison.

Unraveling the Oil Storage Fraud: Crypto asset, Phantom Companies, and International Laundering Schemes

Investigators reveal that this operation was a meticulously organized, high-stakes fraudulent scheme disguised as oil investment opportunities. Between August 2022 and August 2024, con artists persuaded victims to invest in oil tank storage units located in places like Rotterdam and Houston, using compelling presentations that promised significant rental income.

However, the entire operation was merely a facade. Victims transferred money into what they assumed were reputable escrow accounts linked to sham companies. Some of these companies included Sea Forest International LLC and Apex Oil and Gas Trading LLC.

$7.1M in Crypto Linked to Oil & Gas Scam Targeted by U.S. Prosecutors

The U.S. Attorney’s Office for the Western District of Washington has initiated a civil lawsuit to recover around $7.1 million in digital currency tied to an oil and gas investment scam.… pic.twitter.com/n1XCOFcq7E

— MetaEra (@MetaEraHK) July 22, 2025

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After the funds were received, all communication ceased. Investigators report that over $97 million has been drained through at least 81 bank accounts and 19 different crypto wallets. These wallets handled transactions in BTC, ETH, Tether, and USDC.

Some of these have been linked to high-risk exchanges reportedly connected to global money laundering operations, including those based in Russia and Nigeria. A fraction of the cryptocurrency even ended up on Binance.

The scam has left numerous investors in a lurch, with confirmed losses exceeding $17.9 million, and this number is likely to rise. Many victims were drawn in by the illusion of institutional legitimacy and regulated escrow setups.

US looks to seize $7.1M in crypto from oil and gas investment fraud

The U.S. Department of Justice is aiming to seize $7.1 million in cryptocurrency connected to a $97 million oil and gas investment scam. The operation, active from June 2022 to July 2024, pic.twitter.com/DftwINJAuT

— CoinsCapture (@CoinsCapture) July 23, 2025

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However, behind closed doors, the operation acted as an international criminal route, utilizing crypto asset as the final layer for laundering. This deception emphasizes how criminals are adapting their methods to manipulate the digital asset infrastructure, intensifying discussions on centralized exchanges’ compliance and wallet traceability.

Justice Through Forfeiture and Future Steps for Victims and Crypto Regulation

On July 22, 2025, the U.S. Attorney’s Office for the Western District of Washington filed a civil suit to seize $7.1 million in crypto asset associated with the fraud. This follows an earlier confiscation of $2.3 million from bank accounts during Auyeung’s arrest in August 2024. The aim is to recover and redistribute the confiscated funds to victims, subject to court approval. Authorities initially seized the digital currency in December 2024 and have included the scrutinized wallets in their growing evidence collection.

Geoffrey K. Auyeung, a 47-year-old resident of Newcastle, Washington, is the primary target in the Justice Department’s investigation. Prosecutors contend he pocketed the majority of the illicit gains. Indicted last year, he now faces a possible sentence of up to 200 years.

Assistant U.S. Attorneys Jehiel Baer and Yunah Chung are handling the prosecution, while Homeland Safety Investigations heads the multi-agency inquiry.

U.S. authorities seized over $7.1 million in cryptocurrencies linked to a $97 million oil tank rental scam. The fraud involved laundering through 19+ crypto wallets and 81 bank accounts worldwide. Lead suspect Geoffrey K. Auyeung faces up to 200 years in prison. Advanced… pic.twitter.com/MIWKvrvvQE

— Fama Crypto (@Famacrypt) July 23, 2025

As the civil forfeiture process unfolds, the criminal case against Auyeung and others continues to develop. Authorities anticipate that more victims may come forward, and further crypto assets may be identified as forensic analysis progresses.

For both investors and exchanges, this case emphasizes the essential nature of vigilance and crypto law, especially in a post-FTX environment where regulators are closely monitoring activities.

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