Geoffrey K. Auyeung, a 47-year-old man from the Seattle, Washington area, was sentenced to five years in prison on charges of conspiracy to commit money laundering for his role in a cryptocurrency fraud scheme that defrauded victims of nearly $100 million. Auyeung was arrested in 2024 and pleaded guilty in February. He facilitated the scheme by receiving fraud proceeds and converting them to Bitcoin, Ethereum, and dollar-backed stablecoins like USDT and USDC before forwarding the assets to co-conspirators via cryptocurrency exchanges including Gemini, Bitstamp, Coinbase, and Binance. The case underscores U.S. federal enforcement efforts targeting cryptocurrency-enabled financial crimes.
Auyeung Converted Fraud Proceeds to Cryptocurrency via Multiple Exchanges
Auyeung and his co-conspirators persuaded victims to send them money from at least 2022-2024, convincing them that their funds were being invested in the oil and gas industry. When Auyeung received the money, he transferred it to bank accounts or cryptocurrency exchanges including Gemini, Bitstamp, and Coinbase to purchase crypto assets. Most of the cryptocurrency tokens were eventually transferred to Binance, and victims received no further communication from Auyeung.
During the period from June 2022 to July 2024, Auyeung's accounts received $97.1 million in wire transfers and other deposits, all of which the government believes were fraud proceeds. According to prosecutors, Auyeung funneled funds through various accounts and entities to reduce scrutiny. Prosecutors stated he "rapidly converted vast sums of fiat funds into cryptocurrency, which he then rapidly dispersed to various deposit addresses provided by his co-conspirators."
Court Orders $9.4 Million Asset Forfeiture and Five-Year Prison Term
Auyeung earned at least $4 million in commission payments from co-conspirators for his role in the scheme. He is forfeiting more than $2.3 million seized from bank accounts at the time of his arrest, along with a vehicle and $7.1 million seized from cryptocurrency wallets.
First Assistant U.S. Attorney Neil Floyd stated: "Mr. Auyeung facilitated a fraud, developed by others, that stole investor money while lulling them with promises of a legitimate escrow account." Floyd added that Auyeung "showed utter disrespect for the law."
Defendant Continued Scheme Activity for 16 Months After Arrest
Even after Auyeung was indicted and arrested, he spent 16 months secretly communicating with his co-conspirators and continuing to receive illicit fees by directing money to his wife's bank accounts, according to prosecutors. This post-arrest conduct was cited by First Assistant U.S. Attorney Neil Floyd as evidence of Auyeung's disregard for legal proceedings.
FAQ
What was Geoffrey K. Auyeung sentenced for?
Geoffrey K. Auyeung was sentenced to five years in prison for conspiracy to commit money laundering. He facilitated a fraud scheme that defrauded victims of nearly $100 million by converting fraud proceeds into Bitcoin, Ethereum, USDT, and USDC and transferring them to co-conspirators.
How much money did Auyeung's accounts receive during the fraud scheme?
From June 2022 to July 2024, Auyeung's accounts received $97.1 million in wire transfers and other deposits, all of which the government believes were fraud proceeds.
What assets is Auyeung forfeiting as part of his sentence?
Auyeung is forfeiting more than $2.3 million seized from bank accounts at the time of his arrest, $7.1 million seized from cryptocurrency wallets, and one vehicle.
