U.S. Targets $7.1M in Crypto from Oil and Gas Fraud Scheme

The U.S. government has launched a civil forfeiture action targeting $7.1 million in cryptocurrency allegedly linked to a fraudulent oil and gas investment scheme, according to a press release from the U.S. Attorney’s Office [1]. The scam, which operated between June 2022 and July 2024, allegedly deceived investors by falsely claiming to generate profits through non-existent oil tank rentals. Instead, the perpetrators used a multi-layered approach to transfer approximately $97 million into dozens of accounts before converting substantial sums into cryptocurrencies such as Bitcoin, Tether, USD Coin, and Ether [1].

Federal prosecutors revealed that the stolen funds were laundered through a network of 81 bank and cryptocurrency accounts, complicating traceability [1]. A key figure in the case, Geoffrey Auyeung, was indicted in August 2024 on money laundering charges and received a significant portion of the illicit proceeds. Prosecutors stated that Auyeung funneled funds into various digital currencies, later transferring large amounts to crypto exchange Binance. After his arrest, U.S. authorities froze over $2.3 million in his bank accounts [1].

The investigation also identified individuals in Russia and Nigeria who used the stolen funds to purchase cryptocurrency, with portions of these assets sent to exchanges in their home countries. Acting U.S. Attorney Teal Luthy emphasized that the complex financial trail was designed to obscure the origins of the money, noting that rapid federal intervention enabled recovery efforts to commence [1].

To date, prosecutors have identified victims who collectively lost $17.9 million to the scheme. If a court grants the forfeiture request, the total recovered by U.S. authorities could reach $9.4 million to compensate victims [1]. The case underscores a broader regulatory push against cryptocurrency fraud. Earlier this month, in July 2025, two men were charged in connection with OmegaPro, a crypto Ponzi scheme that defrauded investors of $650 million. Separately, a former athlete was penalized for orchestrating a $900,000 Ponzi scheme related to cryptocurrency mining [1].

The U.S. Department of Justice continues to employ blockchain analytics and traditional investigative techniques to dismantle transnational fraud networks exploiting digital assets. This case highlights the growing resolve of U.S. authorities to recover stolen cryptocurrency and safeguard investor interests amid increasingly sophisticated schemes [1].

Source: [1] [title1US Targets $7.1M in Crypto Linked to Oil and Gas Fraud Scheme] [url1https://www.livebitcoinnews.com/us-targets-7-1m-in-crypto-linked-to-oil-and-gas-fraud-scheme/]