$7.1million in crypto laundered by Nigerians and Russians on Binance seized in US fraud probe
The United States government has initiated civil proceedings to forfeit cryptocurrency valued at approximately $7.1 million in connection with an international investment fraud scheme involving oil and gas storage, with ties to Nigeria and Russia.
The U.S. Attorney’s Office for the Western District of Washington filed the civil action on Tuesday, July 22, 2025. The crypto assets were seized in December 2024 following an investigation by Homeland Security Investigations (HSI).
According to Acting U.S. Attorney Teal Luthy Miller, the seized funds are part of a broader scheme that defrauded investors of over $97 million between June 2022 and July 2024.
“The co-schemers in this fraud moved their ill-gotten gain through various cryptocurrency accounts to try to launder the money stolen from victims,” said Acting U.S. Attorney Miller. “Federal investigators and prosecutors in our office moved as quickly as possible to trace and seize the cryptocurrency so that some of the losses can be returned to victims.”
Court filings reveal that from at least August 2022 through August 2024, perpetrators lured victims with offers to invest in oil tank storage facilities located in Rotterdam, Netherlands, and Houston, Texas. Investors were told they could make lucrative profits by renting out the storage tanks. However, after transferring funds to accounts tied to fraudulent entities—including Sea Forest International LLC, Apex Oil and Gas Trading LLC, and Terminal Energy International Escrow Service LLC—victims received no returns or communication.
The primary U.S.-based suspect, 47-year-old Geoffrey K. Auyeung of Newcastle, Washington, was indicted in August 2024. He is accused of receiving large sums from the fraudulent investments and rapidly dispersing the funds through at least 81 financial institution accounts and 19 cryptocurrency wallets. The assets were then converted into cryptocurrencies such as Bitcoin, Tether, USD Coin, and Ethereum, and routed through exchanges like Binance.
According to the government, many of the cryptocurrency accounts were associated with users in Russia and Nigeria. Funds were transferred to exchanges in both countries, including platforms believed to facilitate money laundering for transnational criminal organisations and entities that breach international sanctions.
In addition to the $7.1 million in crypto assets, U.S. authorities had earlier seized $2.3 million from Auyeung’s bank accounts. If the court approves the latest forfeiture action, the seized funds will be returned to the victims.
So far, investigators have identified dozens of victims defrauded out of approximately $17.9 million. That figure is expected to rise as further victims are identified and verified.
The case is being investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Jehiel Baer and Yunah Chung.
