Geoffrey K. Auyeung, a 47-year-old resident of Newcastle, Washington, was sentenced to 5 years in prison for conspiracy to commit money laundering after helping overseas fraudsters launder nearly $100 million in proceeds from investment scams. Prosecutors said Auyeung moved funds through bank accounts and cryptocurrency exchanges on behalf of victims who believed they were investing in the oil and gas industry. He was arrested in August 2024 and pleaded guilty in February. The scheme involved routing victim deposits through at least 9 entities, 81 bank accounts, and 19 crypto exchange accounts before converting funds into bitcoin, Ethereum, USDT, and USDC and sending them to accounts in Nigeria and Russia. First Assistant U.S. Attorney Neil Floyd stated that Auyeung facilitated a fraud developed by others, stealing investor money while promising legitimate escrow arrangements.
Auyeung Operated Fraud Network Through Bank and Crypto Accounts
Prosecutors said Auyeung established at least 9 entities to receive victim funds between around August 2022 and August 2024. Victims were told they were sending money to escrow accounts to purchase oil tank storage in various locations, with promises of substantial profits. Instead, the funds were routed through entities, bank accounts, and crypto exchanges controlled or arranged by Auyeung.
Once victims deposited funds into the accounts Auyeung had set up, the money was quickly transferred to other accounts, moved offshore, or converted into cryptocurrencies. Prosecutors said the converted assets included bitcoin, Ethereum, USDT, and USDC.
Funds Converted to Crypto and Sent to Overseas Accounts
The use of crypto exchanges was central to the laundering process. Funds moved through platforms including Gemini, Coinbase, and Bitstamp before much of the cryptocurrency was sent to Binance accounts controlled by individuals in Nigeria and Russia, according to prosecutors.
The structure shows how fraud networks can combine traditional banking rails with crypto liquidity. Bank accounts were used to receive victim wires and deposits, while exchanges allowed funds to be converted into digital assets and moved across borders more quickly than conventional transfers. The criminal conduct did not depend on crypto at the point of victim solicitation. The victims were deceived through an investment pitch tied to oil and gas. Crypto became the laundering channel after the fraud proceeds entered the financial system.
Prosecutors Documented 81 Bank Accounts and 19 Crypto Exchange Accounts
Prosecutors said Auyeung opened at least 81 bank accounts at 24 financial institutions and 19 accounts on 8 crypto exchanges. Those accounts received $97.1 million in wire transfers and deposits, all believed to be proceeds of fraud.
The size of the account network suggests the scheme relied on volume, fragmentation, and rapid movement. Multiple entities and accounts can make fraud proceeds appear less concentrated, complicate monitoring, and delay detection by individual financial institutions that only see part of the activity.
Auyeung received at least $4 million in commission payments for his role in the scheme. Prosecutors said he continued the operation even after being indicted, using accounts in his wife's name and accepting an additional $400,000 in commissions between August 2024 and December 2025.
Auyeung Forfeits $2.3 Million and $7.1 Million in Cryptocurrency
As part of the case, Auyeung is forfeiting about $2.3 million seized from bank accounts and his home, an Audi SQ8, and roughly $7.1 million in cryptocurrency. He will also relinquish around $300,000 held in bank accounts. The government has sought more than $24 million in restitution, reflecting the scale of victim losses tied to the alleged fraud network.
The sentence shows how U.S. authorities are treating money-laundering facilitators as key targets, even when the underlying fraud is developed by overseas actors. For the crypto industry, the case adds to pressure around transaction monitoring, exchange onboarding, stablecoin flows, and suspicious activity reporting. USDT and USDC were among the assets used in the laundering process, which places stablecoins again at the center of enforcement concerns involving cross-border movement of illicit funds.
FAQ
What was Geoffrey K. Auyeung sentenced for?
Geoffrey K. Auyeung was sentenced to 5 years in prison for conspiracy to commit money laundering after helping overseas fraudsters launder nearly $100 million in proceeds from investment scams through bank accounts and cryptocurrency exchanges.
How did Auyeung use cryptocurrency in the laundering scheme?
Prosecutors said Auyeung converted victim funds into bitcoin, Ethereum, USDT, and USDC using platforms including Gemini, Coinbase, and Bitstamp, then sent much of the cryptocurrency to Binance accounts controlled by individuals in Nigeria and Russia.
What assets is Auyeung forfeiting as part of the case?
Auyeung is forfeiting about $2.3 million seized from bank accounts and his home, an Audi SQ8, roughly $7.1 million in cryptocurrency, and around $300,000 held in bank accounts. The government has sought more than $24 million in restitution.
