$7.1 Million Worth of Crypto Seized!
It was reported that a portion of the 97 million pieces of funds, made by the Seattle Regional Office of the US Department of Justice on July 22, 2025, were diverted to cryptocurrency under the promise of "participating in oil storage tanks" between August 2022 and August 2024. A civil forfeiture lawsuit was filed for $7.1 million in crypto assets seized from the Treasury.
According to investigation records, the suspects initially transferred the funds to at least 81 different bank accounts. These funds were then purchased using Bitcoin, Ethereum, Tether, and USD Coin (USDC) and sent to cryptocurrency exchanges—mostly Binance. Thus, the funds intended for collection through the dark web were stored in digital wallets.
Geoffrey K. Auyeung, 47, a resident of Newcastle, Washington, was indicted as a key figure in the fraud ring in August 2024. $2.3 million in cash was seized from Auyeung's bank accounts; the remainder was transferred to Binance, the majority of which was used to purchase cryptocurrencies.
Most of the accounts targeted for confiscation were operated from Russian and Nigerian IP addresses. Authorities said some funds were sent to exchanges on international sanctions lists and that they were being assessed for possible connections to transnational criminal activity.
The investigation is being conducted by Homeland Security Investigations (HSI), while Assistant U.S. Attorneys Jehiel Baer and Yunah Chung are representing the case. "The fraudsters attempted to launder the money they stole from their victims by circulating their ill-gotten gains through various crypto accounts," said Acting Attorney General Teal Luthy Miller. "You can be sure you'll be given that title."
The total damages, totaling 17.9 million rounds, confirmed so far will rise as more applications are filed. If the court approves the forfeiture request, the $7.1 million in seized cryptocurrency funds will be placed on hold pending refunds.
This development is considered a significant step in combating cryptocurrency laundering in financial scams designed to lure oil investments. Don't forget to follow us on X ! Click here for our other news.
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This content is for informational purposes only and does not constitute investment advice. Cryptocurrency investments carry a high level of risk, and you are responsible for all your investment decisions.
CoinNET.com accepts no liability for any damage or loss that may arise from the contents.
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This content is for informational purposes only and does not constitute investment advice. Cryptocurrency investments carry a high level of risk, and you are responsible for all your investment decisions.
CoinNET.com accepts no liability for any damage or loss that may arise from the contents.
