Nearly $100 million in investor funds modified into once funneled by shell corporations, offshore accounts, and predominant cryptocurrency exchanges in a sweeping federal money laundering case, underscoring risks and purple flags crypto investors cannot have faith the funds for to ignore.
Federal Crackdown Uncovers $100 Million Crypto Laundering Operation
Monetary fraud schemes intriguing cryptocurrency proceed to map federal enforcement action. The U.S. Attorney’s Establish of job for the Western District of Washington offered on Feb. 20 that a Newcastle, Washington, man pleaded guilty to conspiracy to commit money laundering tied to merely about $100 million in funding fraud proceeds.
Prosecutors detailed how Geoffrey K. Auyeung handled investor funds and redirected them by more than one financial channels as section of the conspiracy. The announcement states:
“As soon as the funds got right here into accounts managed by Auyeung, the money modified into once rapidly moved into assorted accounts, moved offshore, or modified into once aged to buy cryptocurrencies, collectively with bitcoin, tether, USD Coin, and ethereum, by cryptocurrency exchanges equivalent to Gemini, Bitstamp, and Coinbase.”
“Grand of the cryptocurrency modified into once extra transferred to accounts on the cryptocurrency alternate Binance. The Binance accounts had been managed by the identical particular person or americans positioned in Nigeria and Russia. Victims had been no longer despatched any extra knowledge on their funding and Auyeung and others merely stopped responding,” the announcement provides.
Authorities outlined that Geoffrey K. Auyeung, 47, created nine entities, collectively with Sea Woodland World LLC, Apex Oil and Gas Procuring and selling LLC, and Navigator Vitality Logistics LLC, to acquire money from those that believed they had been securing oil tank storage in Rotterdam, Netherlands, or Houston.
Investigators traced $97.1 million in home and worldwide third-celebration wire transfers and deposits by accounts linked to Auyeung between June 2022 and July 2024, collectively with approximately $24.7 million tied to about 35 victims. The Division of Justice (DOJ) outlined:
“Auyeung opened as a minimum 81 assorted financial institution accounts at 24 assorted financial institutions. And he opened 19 accounts on eight assorted cryptocurrency exchanges.”
Court docket filings point out that he obtained as a minimum $4,078,348 in commissions and misled banks regarding the provide of funds and his characteristic in fraud complaints. Even after his August 2024 indictment, he endured speaking with co-conspirators and well-liked one more $400,000 by channeling deposits by accounts in his accomplice’s title. 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 within the purpose out time held in financial institution accounts. Sentencing is scheduled for Also can 12, and prosecutors understanding to counsel 63 months in penal complex.
