A 47-year-old man from the Seattle area has been sentenced to five years in federal prison after being convicted for his involvement in a large-scale cryptocurrency fraud scheme that deceived victims out of nearly $100 million. Geoffrey K. Auyeung was apprehended in 2024 and entered a guilty plea earlier this year, acknowledging his role in the conspiracy to commit money laundering.
Auyeung was implicated in a scheme that solicited funds from victims under the guise of investments in the oil and gas industry. Instead of using the money as promised, he channeled these fraudulent proceeds to the bank accounts or cryptocurrency addresses of his accomplices, converting the funds into various digital currencies, including Bitcoin, Ethereum, and dollar-pegged stablecoins like USDT and USDC.
First Assistant U.S. Attorney Neil Floyd underscored the gravity of Auyeung’s actions, stating, “Mr. Auyeung facilitated a fraud, developed by others, that stole investor money while lulling them with promises of a legitimate escrow account.” The prosecution further highlighted Auyeung’s blatant disregard for legal repercussions, revealing that even after his indictment, he continued to communicate covertly with his co-conspirators for an additional 16 months, channeling illicit fees into his wife’s bank accounts.
From 2022 to 2024, Auyeung and his network of fraudsters persuaded victims to invest significant sums of money, which ultimately resulted in Auyeung receiving approximately $97.1 million in wire transfers and other deposits believed to be the fruits of their fraudulent activities. Prosecutors detailed how Auyeung skillfully maneuvered these funds through multiple accounts and entities, aiming to minimize scrutiny from financial institutions.
The fraudulent scheme involved converting vast amounts of fiat currency into cryptocurrency, which Auyeung then rapidly dispersed to various deposit addresses supplied by his co-conspirators. His operations linked to major cryptocurrency exchanges like Gemini, Bitstamp, and Coinbase. Ultimately, most of the converted tokens found their way to the leading crypto exchange, Binance, at which point communication ceased entirely with the victims.
In terms of financial gain, Auyeung earned an estimated $4 million in commission payments from his co-conspirators. As part of his sentencing, he is forfeiting over $2.3 million previously seized from his bank accounts at the time of his arrest, in addition to a car and approximately $7.1 million confiscated from his cryptocurrency wallets.
Authorities have been on high alert regarding cryptocurrency scams, particularly as they have surged in popularity, with warnings issued about the risks facing potential investors, especially during events like the World Cup, which have been targeted by scammers.
