$100M Crypto Laundering Bust Reveals 81 Bank Accounts and Offshore Transfers

Nearly $100 million in investor funds was funneled through shell companies, offshore accounts, and major cryptocurrency exchanges in a sweeping federal money laundering case, underscoring risks and red flags crypto investors cannot afford to ignore.

Federal Crackdown Uncovers $100 Million Crypto Laundering Operation

Financial fraud schemes involving cryptocurrency continue to draw federal enforcement action. The U.S. Attorney’s Office for the Western District of Washington announced on Feb. 20 that a Newcastle, Washington, man pleaded guilty to conspiracy to commit money laundering tied to nearly $100 million in investment fraud proceeds.

Prosecutors detailed how Geoffrey K. Auyeung handled investor funds and redirected them through multiple financial channels as part of the conspiracy. The announcement states:

“Once the funds came into accounts controlled by Auyeung, the money was quickly moved into other accounts, moved offshore, or was used to purchase cryptocurrencies, including bitcoin, tether, USD Coin, and ethereum, via cryptocurrency exchanges such as Gemini, Bitstamp, and Coinbase.”

“Much of the cryptocurrency was further transferred to accounts at the cryptocurrency exchange Binance. The Binance accounts were controlled by the same individual or individuals located in Nigeria and Russia. Victims were not sent any further information on their investment and Auyeung and others simply stopped responding,” the announcement adds.

Authorities outlined that Geoffrey K. Auyeung, 47, created nine entities, including Sea Forest International LLC, Apex Oil and Gas Trading LLC, and Navigator Energy Logistics LLC, to receive money from individuals who believed they were securing oil tank storage in Rotterdam, Netherlands, or Houston.

Investigators traced $97.1 million in domestic and international third-party wire transfers and deposits through accounts linked to Auyeung between June 2022 and July 2024, including approximately $24.7 million tied to about 35 victims. The Department of Justice (DOJ) explained:

“Auyeung opened at least 81 different bank accounts at 24 different financial institutions. And he opened 19 accounts on eight different cryptocurrency exchanges.”

Court filings indicate that he received at least $4,078,348 in commissions and misled banks about the source of funds and his role in fraud complaints. Even after his August 2024 indictment, he continued communicating with co-conspirators and accepted another $400,000 by channeling deposits through accounts in his wife’s name. Auyeung agreed to pay $24,707,031 in restitution and to forfeit approximately $2.3 million in seized funds, an Audi SQ8, $7.1 million from cryptocurrency wallets, and about $300,000 currently held in bank accounts. Sentencing is scheduled for May 12, and prosecutors plan to recommend 63 months in prison.