Washington man sentenced in U.S. crypto laundering scheme case

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Washington crypto laundering sentencing

Highlights

Geoffrey K. Auyeung was sentenced to five years in prison for laundering $97.1 million through at least 81 bank and 19 crypto exchange accounts between August 2022 and August 2024.
Prosecutors say Auyeung received at least $4 million in commissions and continued his activity post-indictment, earning an additional $400,000 between August 2024 and December 2025.
Authorities seized about $2.3 million from Auyeung’s assets, $7.1 million in cryptocurrency, an Audi SQ8, and the government seeks over $24 million in restitution.

Sentencing details and scheme timeline

As reported by the U.S. Department of Justice, 47-year-old Geoffrey K. Auyeung of Newcastle, Washington, is sentenced to five years in prison for conspiracy to commit money laundering after helping overseas fraudsters move nearly $100 million through bank accounts and crypto exchanges.

Prosecutors say Auyeung set up at least nine entities to receive funds from victims who believed they were investing in the oil and gas industry. From around August 2022 through August 2024, co-conspirators persuaded victims to send money to supposed escrow accounts for oil tank storage projects in multiple locations, with promises of substantial returns.

Neil Floyd, First Assistant U.S. Attorney, says Auyeung enabled a fraud designed by others that took investor money while presenting the accounts as legitimate escrow vehicles. After funds reached the accounts he controlled, investigators say the money was rapidly shifted to other accounts, sent offshore or converted into bitcoin, Ethereum, USDT and USDC through exchanges including Gemini, Coinbase and BitStamp.

Financial scope and enforcement impact

Much of the cryptocurrency was then transferred to Binance accounts controlled by individuals in Nigeria and Russia, and victims received no further updates on their purported investments, the DOJ says. Authorities say Auyeung opened at least 81 bank accounts at 24 financial institutions and 19 accounts on eight crypto exchanges, which together received $97.1 million in wire transfers and deposits believed to be fraud proceeds.

Prosecutors say Auyeung received at least $4 million in commissions for his role in the scheme. Even after his indictment, he continued operating through accounts in his wife's name and accepted another $400,000 in commissions between August 2024 and December 2025.

Auyeung was arrested in August 2024 and pleaded guilty last February. He is forfeiting about $2.3 million seized from bank accounts and his home, an Audi SQ8, roughly $7.1 million in cryptocurrency, and about $300,000 held in bank accounts, while the government has sought more than $24 million in restitution.

Our earlier coverage of the House Ways and Means Committee’s digital asset tax proposal detailed lawmakers’ push to modernize U.S. tax rules for cryptocurrencies and related products. It explained how clearer guidance could reduce compliance friction and uncertainty for individuals and businesses, while supporting U.S. competitiveness as digital-asset use expands.

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