Authorities Seize $7.1M Crypto from Oil Scam 

Federal prosecutors in Seattle filed a civil forfeiture action Tuesday to seize $7.1 million in cryptocurrency connected to an alleged oil and gas investment fraud. Homeland Security agents had seized the assets in December 2024 following an investigation into a scheme that raised $97 million from investors between June 2022 and July 2024. If the court approves the forfeiture, the funds will be converted into a distribution fund for defrauded investors.

According to the complaint filed in the U.S. District Court for the Western District of Washington, promoters promised investors substantial returns from leasing oil tank storage facilities in Houston and Rotterdam. Authorities identified Sea Forest International and Apex Oil and Gas Trading as front companies used to channel investor money into cryptocurrency accounts. 

Acting U.S. Attorney Teal Luthy Miller said the co-schemers moved their ill-gotten gain through various cryptocurrency accounts to launder stolen proceeds and evade detection. Prosecutors allege the targeted accounts belonged to individuals in Russia and Nigeria.

Investigators detailed a complex layering process, tracing transactions through at least 19 crypto wallets and multiple domestic and international bank accounts before converting the proceeds into digital tokens.

Geoffrey Auyeung of Newcastle, Washington, was charged in August 2024 after authorities traced roughly $2.3 million in deposits to his personal bank accounts. Prosecutors say he purchased and transferred the bulk of the funds through the Binance exchange.

Investigators also have identified about $17.9 million in verified victim losses and expect more claimants to emerge. If the court approves the $7.1 million forfeiture, total recoveries would reach approximately $9.4 million for distribution under federal asset recovery procedures.

The action follows other recent crypto fraud enforcement. Earlier this month, ICE Homeland Security Investigations New York indicted two men for operating the OmegaPro investment scheme, which defrauded investors of over $650 million. On July 16, 2025, former semi‑professional rugby player Shane Donovan Moore was sentenced to 30 months in prison for operating a $900,000 Ponzi scheme.

Federal authorities have expanded civil forfeiture actions and deployed blockchain analytics to recover stolen assets as fraudsters increasingly use digital assets and shell entities to hide illicit proceeds.