US Moves to Seize $7.1M in Crypto Linked to Oil and Gas Investment Scam

The United States is pursuing the forfeiture of $7.1 million in cryptocurrency seized by Homeland Security in December, tied to an alleged oil and gas investment scam that ran for two years. The Seattle US Attorney’s Office announced on Tuesday that it filed a civil action to seize a portion of the $97 million collected in the suspected scam, which operated between June 2022 and July 2024. Acting US Attorney Teal Luthy Miller stated that the “co-schemers in this fraud moved their ill-gotten gain through various cryptocurrency accounts to try to launder the money stolen from victims.” Scam Laundered Victim Funds Through Crypto Accounts The crypto accounts targeted for forfeiture reportedly belong to individuals in Russia and Nigeria, who allegedly used victims’ funds to purchase cryptocurrencies before transferring a portion to exchanges in their home countries. Authorities believe these transactions were part of efforts to disguise the origins of the stolen funds while enabling the perpetrators to access the funds globally. Prosecutors allege that investors were promised profits through a scheme claiming to purchase and rent out oil tank storage facilities. However, after receiving the funds, the alleged operators would cease communication, leaving victims without recourse. Key Arrests and Regulatory Crackdown Continue One individual, Geoffrey Auyeung, was indicted in August 2024 for allegedly playing a central role in laundering the stolen funds. Auyeung is accused of purchasing Bitcoin, Tether, USDC, and Ether with the illicit proceeds and sending most of the crypto to Binance. At the time of his arrest, US authorities seized nearly $2.3 million from his bank accounts. Prosecutors have so far identified victims who lost $17.9 million, with expectations that additional victims will come forward to claim losses as investigations continue. Should the court approve the $7.1 million forfeiture, the total reclaimed funds would rise to $9.4 million, which would then be distributed to verified victims of the alleged scam. The case forms part of a broader clampdown by US regulators targeting crypto-related fraud . Earlier this month, prosecutors charged two OmegaPro promoters accused of defrauding investors of $650 million. A former rugby player was sentenced to 2.5 years in prison for a $900,000 Ponzi scheme. Additionally, Hong Kong police recently arrested four individuals linked to a $382,000 crypto fraud, although the suspected ringleader remains at large. The latest US action reflects the government’s commitment to recovering assets tied to crypto scam while reinforcing efforts to protect investors in a rapidly evolving digital asset landscape. The post US Moves to Seize $7.1M in Crypto Linked to Oil and Gas Investment Scam appeared first on TheCoinrise.com .

Source: The Coin Rise