A Newcastle, Washington, man received five years in prison for helping move fraud proceeds through bank accounts and crypto exchanges. The U.S. Attorney’s Office said Geoffrey K. Auyeung pleaded guilty to conspiracy to commit money laundering.
Summary
- Geoffrey K. Auyeung received five years in prison after pleading guilty to conspiracy to commit money laundering.
- Prosecutors said $97.1 million passed through bank accounts and cryptocurrency exchange accounts opened by Auyeung.
- Authorities said the funds moved through accounts linked to Bitcoin, Tether, USD Coin, Ethereum and Binance overseas.
Prosecutors said nearly $100 million passed through accounts he opened and linked to cryptocurrency platforms.
Auyeung sentenced in Seattle federal court
United States District Judge John C. Coughenour sentenced Auyeung in federal court in Seattle. The judge said the sentence followed “the scope and magnitude of this fraud.” Auyeung was arrested in August 2024 and pleaded guilty last February.
According to prosecutors, he continued to communicate with accomplices after his indictment and arrest. First Assistant U.S. Attorney Neil Floyd said Auyeung helped scammers take funds from investors. “Mr. Auyeung facilitated a fraud developed by others,” Floyd said in a statement.
Floyd said the victims believed they were sending money to legitimate escrow accounts. He also said Auyeung later diverted illicit fees through his wife’s bank accounts. One victim traveled from the United Kingdom to attend the sentencing hearing. The victim told Auyeung, “You caused a lot of pain.”
Oil and gas scheme used bank and crypto accounts
Court records say Auyeung created at least nine entities to receive funds from investors. The entities used names linked to oil, gas, logistics, escrow and energy services. From August 2022 to August 2024, the accomplices told the victims that they were investing in oil storage. Prosecutors said the storage sites involved Rotterdam in the Netherlands and Houston.
The victims were told they could benefit by renting storage tanks to other people. After payments reached accounts controlled by Auyeung, the funds were moved to other accounts, overseas destinations or crypto exchanges.
Prosecutors said Auyeung opened at least 81 bank accounts at 24 financial institutions. He also opened 19 accounts on eight cryptocurrency exchanges. Between June 2022 and July 2024, those accounts received $97.1 million in third-party deposits. The government said all deposits into the accounts represented fraudulent proceeds.
Bitcoin and stablecoin transfers drove revenue
Authorities said Auyeung used exchanges such as Gemini, BitStamp and Coinbase to purchase cryptocurrencies. Purchases included bitcoinTether, USD coin and Ethereum. Much of the cryptocurrency was later moved to Binance accounts, according to court records. Prosecutors said people in Nigeria and Russia controlled those Binance accounts.
In sentencing documents, prosecutors said Auyeung helped conceal profits from financial institutions and authorities. They said he used false transaction descriptions and fictitious supporting documents.
Prosecutors also said he moved victims’ funds between accounts for no commercial purpose. They said he quickly converted trust funds into cryptocurrency and sent assets to addresses controlled by the co-conspirators. Auyeung received at least $4,078,348 in commission payments, according to prosecutors. They said he demanded higher commissions as he became more aware of the fraud.
Restitution and confiscation are still pending
The court referred the restitution calculation to a trial judge. Prosecutors sought $24,707,031 in restitution for the victims. Auyeung will lose around $2.3 million confiscated from bank accounts and his home.
In addition, an Audi SQ8 will be confiscated, according to the United States Attorney’s Office. Agreed not to challenge the civil forfeiture of some $7.1 million confiscated from crypto wallets. He also agreed to turn over about $300,000 from bank accounts for restitution.
Judge Coughenour praised prosecutors’ efforts to recover funds for victims. “The conduct was excellent,” the judge said during sentencing. Homeland Security Investigations and IRS Criminal Investigation handled the case. Assistant U.S. Attorneys Jehiel I. Baer and Yunah Chung prosecuted the matter.
