A resident of Newcastle, Washington, has been handed a five-year prison term for assisting in the laundering of nearly $97 million worth of fraud proceeds through bank accounts and cryptocurrency exchanges. The U.S. Attorney’s Office confirmed that Geoffrey K. Auyeung entered a guilty plea on charges of conspiracy to commit money laundering. Authorities revealed that the illicit funds flowed through accounts he established and linked to various crypto platforms.
Judge John C. Coughenour delivered the sentence in a Seattle federal court, citing the extensive scale and impact of the fraudulent scheme. Auyeung was taken into custody in August 2024 and formally admitted his guilt in February. Prosecutors noted that even after his indictment and arrest, he persisted in communicating with his co-conspirators. First Assistant U.S. Attorney Neil Floyd emphasized that Auyeung enabled fraudsters to siphon investor money by providing banking and crypto services. Victims believed they were transferring funds to legitimate escrow accounts, but instead, Auyeung redirected the money, including routing some illegal fees through his spouse’s bank accounts. One victim traveled from the United Kingdom to attend the sentencing and expressed the emotional toll the scheme had taken.
The fraudulent operation was tied to an oil and gas investment scheme. Court documents indicate that Auyeung established at least nine shell companies with names related to oil, gas, logistics, and energy services to receive investor funds. Between August 2022 and August 2024, perpetrators convinced victims they were financing oil storage ventures in Rotterdam and Houston, promising profits from renting out tank space. Once payments entered Auyeung’s accounts, the money was funneled to other accounts, overseas locations, or cryptocurrency exchanges. Investigators found that Auyeung opened 81 bank accounts across 24 different financial institutions and 19 accounts on eight crypto exchanges. From June 2022 to July 2024, these accounts collectively received $97.1 million in third-party deposits, all of which were deemed proceeds of fraud.
To mask the illicit flow, Auyeung used crypto exchanges like Gemini, BitStamp, and Coinbase to purchase Bitcoin, Tether, USD Coin, and Ethereum. Most of these digital assets were later transferred to Binance accounts controlled by individuals in Nigeria and Russia, according to court records. Prosecutors accused Auyeung of employing fake transaction descriptions and forged documents to hide the money from financial institutions and law enforcement. He moved victim funds between accounts with no legitimate business purpose, rapidly converted fiat into crypto, and sent assets to addresses held by accomplices. In return, Auyeung received at least $4 million in commissions, and he reportedly demanded higher payments as he grew more aware of the fraud’s nature.
Restitution and forfeiture matters are still pending, with a magistrate judge set to determine the final amount. Prosecutors have requested $24.7 million in restitution for victims. Auyeung will forfeit approximately $2.3 million seized from bank accounts and his home, along with an Audi SQ8. He also agreed not to contest the civil forfeiture of about $7.1 million from crypto wallets and to surrender around $300,000 from bank accounts toward restitution. Judge Coughenour commended the prosecution’s work in recovering funds for those harmed. The case was investigated by Homeland Security Investigations and IRS Criminal Investigation, with Assistant U.S. Attorneys Jehiel I. Baer and Yunah Chung leading the prosecution.