Washington State Files Civil Action to Forfeit $7.1 Million in Crypto from International Fraud Scheme

[Redator]

Washington State just dropped the hammer on a crypto-linked fraud operation, filing to seize $7.1 million in digital assets tied to an international oil storage scam. The scheme lured investors with promises of high returns, but it turns out that everything is smoke.

Backed by the DoJ and Homeland Security Investigations, the civil action targets crypto wallets allegedly used to launder investor funds. The main suspect, Geoffrey K. Auyeung, already faces a criminal indictment and could see up to 200 years behind bars.

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Inside the Oil Storage Scam: Crypto, Shell Companies, and Global Laundering Fraud

Investigation suggests this was a well-coordinated, high-dollar scheme wrapped in fake oil investments. From August 2022 to August 2024, scammers convinced victims to invest in oil tank storage units in hubs like Rotterdam and Houston. They have used pitch decks that promised substantial rental profits.

In reality, the entire operation was smoke and mirrors. Victims wired funds into what they believed were legitimate escrow accounts tied to shell companies. Some of those companies’ names were Sea Forest International LLC, Apex Oil and Gas Trading LLC.

$7.1M in Crypto Tied to Oil & Gas Scam Targeted by U.S. Prosecutors

The U.S. Attorney’s Office for the Western District of Washington has filed a civil action seeking to recover approximately $7.1 million in cryptocurrency linked to an oil and gas investment fraud scheme.… pic.twitter.com/n1XCOFcq7E

— MetaEra (@MetaEraHK) July 22, 2025

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Once the money landed, communication stopped. Investigators say over $97 million was siphoned off through at least 81 financial institution accounts and 19 separate crypto wallets. These wallets transacted in Bitcoin, Ethereum, Tether, and USDC.

Some of which were traced to high-risk exchanges allegedly linked to global money laundering networks, including those operated out of Russia and Nigeria. A portion of the crypto even landed on Binance.

The scam left dozens of investors stranded, with confirmed losses topping $17.9 million, and the figure is expected to grow. Many victims were lured in by the illusion of institutional legitimacy and regulated escrow setups.

US looks to grab $7.1M in crypto from oil and gas investment scam

The U.S. Department of Justice is seeking to seize $7.1 million in cryptocurrency linked to a $97 million oil and gas investment scam. The scheme, active from June 2022 to July 2024, pic.twitter.com/DftwINJAuT

— CoinsCapture (@CoinsCapture) July 23, 2025

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But behind the scenes, the operation functioned as a transnational criminal pipeline, using crypto as the final laundering layer. This fraud highlights how criminals are evolving their tactics to exploit digital assets infrastructure. This adds fuel to the debate on centralized exchanges compliance and wallet traceability.

Forfeiture Justice and What Comes Next for Victims and Crypto Oversight

On 22nd of July 2025, the US Attorney’s Office for the Western District of Washington filed a civil action to seize $7.1 million in cryptocurrency linked to the scam. This follows an earlier seizure of $2.3 million from bank accounts at the time of Auyeung’s arrest in August 2024. The legal goal is to reclaim and redistribute the seized funds to victims, pending court approval. Authorities originally confiscated the crypto in December 2024, and they have added the wallets under scrutiny to a growing evidence pool.

Geoffrey K. Auyeung, a 47-year-old from Newcastle, Washington, is the central figure in the DoJ’s crosshairs. Prosecutors allege he received the lion’s share of the illicit proceeds. Indicted last year, he now faces a maximum sentence of 200 years.

Assistant US Attorneys Jehiel Baer and Yunah Chung are prosecuting the case, while Homeland Security Investigations is leading the multi-agency probe.

U.S. authorities seized over $7.1 million in cryptocurrencies linked to a $97 million oil tank rental scam. The fraud involved laundering through 19+ crypto wallets and 81 bank accounts worldwide. Lead suspect Geoffrey K. Auyeung faces up to 200 years in prison. Advanced… pic.twitter.com/MIWKvrvvQE

— Fama Crypto (@Famacrypt) July 23, 2025

While the civil forfeiture process plays out, the criminal case against Auyeung and others continues to evolve. Authorities believe more victims may emerge, and additional crypto assets may be traced as forensic analysis continues.

For investors and exchanges alike, this case reinforces the need for diligence and compliance, because in the post-FTX world, the regulators are watching closely.

DISCOVER: 20+ Next Crypto to Explode in 2025

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Key Takeaways

Washington State forfeits $7.1 million in crypto fraud.

More than $97 million could be the losses.

The post Washington State Files Civil Action to Forfeit $7.1 Million in Crypto from International Fraud Scheme appeared first on 99Bitcoins.