The US government seized $7.1 million in cryptocurrency linked to a large-scale oil and gas investment scam.
The money is part of a total $97 million scam that occurred between mid-2022 and mid-2024, when investors were promised high returns from oil and gas storage facilities but were instead robbed.
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$7.1 million in cryptocurrency seized as part of oil and gas investment scam with total losses of $97 million.
The money was laundered through cryptocurrency wallets linked to Russia, Nigeria and transferred to Binance.
The case is part of a growing global crackdown on cryptocurrency fraud.
How a massive oil scam led to the seizure of cryptocurrency?
The scam attracted $97 million from investors by promising high returns on oil storage projects, according to the U.S. Attorney's Office in Seattle.
Instead of actually investing, the scammers converted the funds into crypto assets and stopped communicating with the investors. The digitization journey of the bad funds began when they were converted to Bitcoin, Tether, USDC, and Ethereum.
Deputy Attorney General Teal Luthy Miller stressed that the group “moved the proceeds of crime through multiple cryptocurrency accounts to launder the money and conceal its origins.” These efforts demonstrate the sophistication of modern fraud.
The sophistication of cryptocurrencies poses a major challenge in detecting and preventing cross-border fraud.
Teal Luthy Miller, Deputy United States Attorney, 2025
Where has cryptocurrency been transferred?
The scammed funds are converted into major cryptocurrencies, serving international money laundering.
Specifically, Bitcoin (BTC), Tether (USDT), USDC and Ether (ETH) were purchased and transferred through wallets linked to Russia and Nigeria, creating a complex network. Most of these funds were eventually sent to the world's largest cryptocurrency exchange, Binance.
Geoffrey Auyeung, one of the accused, was arrested in August 2024 after receiving most of the money and converting it into cryptocurrency. Authorities also seized $2.3 million from his bank accounts.
Money laundering through cross-border cryptocurrency accounts demonstrates the need for international cooperation in digital asset control.
David Cohen, Chief Financial Crimes Investigator, 2025
Is the case part of a broader anti-cryptocurrency fraud campaign?
The oil scam is not an isolated incident but is part of a growing number of cryptocurrency-related frauds around the world.
In recent weeks alone, authorities in the United States and internationally have taken down several major cases, including frauds ranging from a few hundred thousand to hundreds of millions of dollars. For example, investigators have taken on cryptocurrency frauds as large as $650 million and cases involving Ponzi schemes.
This clearly demonstrates the close coordination efforts between countries to prevent financial crime in the digital age.
Case Size (USD) Characteristics Handling measures Oil and gas fraud 97 million Fraudulently promised profits from oil storage, transferred money via cryptocurrency Seized 7.1 million in cryptocurrency, arrested the main subject OmegaPro 650 million Fraudulent multi-level investment platform Legal prosecution, arrest of related people Rugby player's Ponzi case 900,000 Ponzi-style capital mobilization model Prison sentence and financial penalty
Frequently Asked Questions
Why are cryptocurrencies often used in scams like this?
Cryptocurrencies allow for fast, anonymous, cross-border transfers, facilitating the concealment of the origin of illicit assets.
Can the government recover cryptocurrencies after scams?
Yes, through international cooperation and technical measures, authorities can trace and seize crypto assets involved in crimes.
What should investors pay attention to to avoid being scammed?
You should carefully check the partner information, avoid investing in non-transparent projects and be wary of promises of unusual profits.
Can seized cryptocurrency be returned to the victim?
Often the seized money will be used to reimburse victims who are formally identified through the legal process.
Does the case show effective international coordination in fighting cryptocurrency fraud?
It is clear that world authorities are working together strongly to promote the handling of cross-border cryptocurrency cases.
Source: https://tintucbitcoin.com/my-phong-toa-71-trieu-usd-tien-dien-tu/
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