$100M Investment Fraud Scheme Unravels as Crypto Assets Are Seized

A $100 million investment fraud scheme has unraveled, resulting in millions of dollars in cryptocurrency being recovered. Geoffrey K. Auyeung, the mastermind behind the scheme, was sentenced to five years in prison on June 9, 2026. Authorities seized $7.1 million from digital wallets tied to the scheme and are seeking $24,707,031 in restitution for victims.

The scheme involved fake oil and gas storage investments in Rotterdam, Netherlands, and Houston, with victims sending funds to accounts they believed were escrow vehicles. The money was then quickly moved into other accounts, offshore, or used to purchase cryptocurrencies via exchanges like Gemini, Bitstamp, Coinbase, and Binance.

Auyeung opened at least 81 bank accounts across 24 financial institutions and 19 accounts on eight cryptocurrency exchanges between June 2022 and July 2024. He received $97.1 million in wire transfers and third-party deposits during this period. The court described crypto as a key laundering channel rather than the original sales pitch.

Auyeung forfeited about $2.3 million in funds, cash seized from bank accounts and his home, an Audi SQ8, and agreed to relinquish roughly $300,000 in bank funds toward restitution. He also agreed not to contest the civil forfeiture of some $7.1 million seized from various cryptocurrency wallets.