US Moves to Seize $7.1M in Crypto From Alleged Investment Scam

• A $97M oil and gas fraud ran from 2022 to 2024
• $7.1M in crypto tied to the scheme is now under forfeiture action
• Funds were funneled into BTC, ETH, USDT, USDC
• Key player indicted: Geoffrey Auyeung
• Crypto used for laundering, but blockchain leaves a trail

In a new wave of enforcement, the US is now targeting over $7.1 million in cryptocurrency linked to what appears to be a $97 million fraudulent oil and gas investment scheme.

The operation, which ran from June 2022 to July 2024, is just the latest example of how traditional scams are being dressed up in Web3 clothing — and how the blockchain trail always catches up.

The scheme lured in victims with the usual bait — high-return promises through oil and gas investments — but under the hood, the money was flowing elsewhere. Funds were funneled into various crypto wallets tied to individuals based in Russia and Nigeria, with large chunks being washed through crypto exchanges.

Nothing new, but the scale and reach here are what make it stand out.

And this wasn’t a scattershot effort by amateurs.

The people behind it converted the stolen fiat into BTC, ETH, USDT, and USDC, and routed much of it through Binance. The choice of tokens wasn’t random — liquidity and ease of conversion were clearly priorities.

At the center of it all is Geoffrey Auyeung, indicted in August 2024, who allegedly played the role of the on-ramp and off-ramp for the scheme’s proceeds. He reportedly received the lion’s share of the funds, turned them into crypto, and helped wash them through multiple layers — a classic playbook for laundering.

When law enforcement caught up with him, $2.3 million in fiat had already been seized from his bank accounts. And now, Homeland Security and the US Attorney’s Office are going after the rest of the trail — starting with that $7.1M in crypto.

This case checks all the boxes: transnational actors, crypto rails, and an old-school scam in modern packaging. But here’s the key thing: blockchain doesn’t forget. While it might take time to follow the breadcrumbs, law enforcement is getting faster, and the noose is tightening.

If anything, this case is a reminder. Just because it’s crypto doesn’t make it clean. And just because it’s DeFi-friendly doesn’t mean the funds can’t be traced.