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- Zafar Naik
Zafar Naik
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jul 23, 2025 08:55 UTC
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US Could Seize $7.1M in Crypto from Global Oil Investment Scam
US authorities seek to seize $7.1M in crypto tied to a $97M oil investment scam.
Funds were laundered through Bitcoin, Ethereum, USDT, and routed via Binance.
Lead suspect Geoffrey Auyeung was indicted; $17.9M in victim losses identified so far.
The US government is trying to seize $7.1 million in cryptocurrency linked to a major oil and gas investment scam.
According to the Seattle US Attorney’s Office, the money was seized by Homeland Security in December 2024, and is part of a much larger fraud that allegedly collected $97 million from investors between June 2022 and July 2024.
Victims were told their money would go into oil tank storage facilities – an investment that promised big returns. But once they sent funds, the people behind the scheme simply stopped responding.
“The co-schemers in this fraud moved their ill-gotten gain through various cryptocurrency accounts to try to launder the money stolen from victims,” said Acting US Attorney Teal Luthy Miller.
Funds Moved Through Russia, Nigeria, and Binance
The fraud quickly turned into a global money-laundering operation.
Prosecutors say victims’ money was used to buy Bitcoin (BTC), Tether (USDT), USDC, and Ether (ETH), and then moved through accounts connected to people in Russia and Nigeria.
A large part of the stolen crypto was reportedly sent to Binance, the world’s biggest crypto exchange.
One person, Geoffrey Auyeung, has already been indicted. He was charged in August 2024 for receiving most of the stolen funds and converting them into crypto.
At the time of his arrest, US officials also seized $2.3 million from his bank accounts.
$17.9 Million Already Tracked, More Expected
So far, prosecutors have identified $17.9 million in losses, but expect more victims to come forward. If the court approves the $7.1 million seizure, the total amount recovered would rise to $9.4 million, which will go toward reimbursing verified victims.
Part of a Larger Crackdown
Not an isolated case, actually. In recent weeks, US and international authorities have stepped up action against crypto-related fraud:
- OmegaPro promoters were charged in a $650 million scam.
- Ex-rugby player Shane Donovan Moore was sentenced for a $900,000 Ponzi scheme.
- In Hong Kong, police arrested four people linked to a $382,000 investor fraud. The suspected ringleader fled overseas.
The US oil scam shows how easily crypto can be misused across borders but it also shows that global enforcement is catching up fast.
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FAQs
Funds were moved via Russia, Nigeria, and Binance using BTC, ETH, USDT, and USDC to hide the scam trail.
Geoffrey Auyeung was indicted in 2024 for converting stolen funds to crypto; $2.3M was seized from him.
$9.4M may be returned to victims if the court approves the $7.1M seizure; $17.9M in losses identified.
Yes 
No 
