Federal authorities in the United States have taken decisive legal action to seize millions in cryptocurrency connected to a global investment scam. The scheme, which promised profits from oil tank storage rentals, left victims defrauded and out of pocket. Now, as investigators track down funds hidden in bank and crypto accounts across borders, the U.S. government is working to ensure victims see some form of justice.
U.S. Launches Legal Action to Recover Millions in Crypto Scam
The United States government has taken a major legal step to seize $7.1 million in cryptocurrency that was used in a large-scale investment scam. This action is part of a wider investigation into a fraudulent oil and gas storage scheme that tricked dozens of victims across the country. The money was traced and seized in December 2024 by Homeland Security Investigations (HSI), a key agency fighting financial crime.
The scheme involved fake companies such as Sea Forest International LLC, Apex Oil and Gas Trading LLC, Navigator Energy Logistics LLC, Terminal Energy International Escrow Service LLC, Energo Horizons Logistics (EA) LLC, Legacy Energy Logistics Transport Group LLC, and Green Tree Gateway LLC. These entities were used to convince people to invest in oil tank storage in Houston, Texas, or Rotterdam, Netherlands. Victims were told they could earn big profits by renting out these tanks.
To make the scam seem real, the co-schemers told investors their money would be kept in secure escrow accounts. But once the funds were sent, all communication stopped. No real investments were made, and the victims never heard back. According to federal prosecutors, the scammers collected around $97 million from victims between June 2022 and July 2024.
Money Moved Through Crypto and Bank Accounts
A Newcastle, Washington resident, Geoffrey K. Auyeung, 47, has been identified as a key player in the U.S. side of the scheme. He was indicted in August 2024 for receiving a large portion of the fraud proceeds. According to investigators, the money was quickly moved through at least 81 different bank accounts and 19 cryptocurrency accounts in an attempt to hide its origin.
Some of the stolen funds were used to purchase popular digital currencies such as Bitcoin, Ethereum, Tether, and USD Coin. Much of this cryptocurrency was later transferred to accounts on the well-known exchange Binance.
So far, authorities have seized $2.3 million from traditional bank accounts connected to Auyeung. The additional $7.1 million in digital currency was seized from cryptocurrency wallets tied to individuals in Russia and Nigeria. These wallets were part of a complex network used to launder the stolen money.
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Investigators also found that some of the stolen crypto was sent to exchanges in Russia and Nigeria, one of which is suspected of helping transnational criminal organizations, including those involved in terrorism and international trade violations.
Victim Refunds May Be Possible After Court Approval
The civil action to forfeit the cryptocurrency was filed by the U.S. Attorney’s Office for the Western District of Washington, led by Acting U.S. Attorney Teal Luthy Miller. Miller stated that the team worked quickly to trace and seize the stolen crypto so it can potentially be returned to victims.
If the court approves the forfeiture, the funds will be used to compensate those who were defrauded. As of now, investigators have confirmed that at least dozens of victims lost around $17.9 million, but they expect the number to grow as more people are identified.
The legal action is being prosecuted by Assistant United States Attorneys Jehiel Baer and Yunah Chung. They are working closely with HSI to bring justice to the victims and hold those involved accountable.
This case highlights how fraudsters can misuse both traditional bank accounts and cryptocurrency to commit large-scale scams. The federal government continues to track the digital money trail and is committed to recovering funds wherever possible.