A Washington resident has been charged with involvement in a $64 million cryptocurrency laundering scheme. He allegedly deceived investors, posing as an escrow agent, and transferred funds into his accounts. The funds were moved offshore or converted to cryptocurrencies such as bitcoin and ethereum via exchanges like Gemini, Bitstamp, Coinbase, and Binance. Investigators traced the money through 74 bank accounts, and $2.3 million has been seized.
Washington Man Faces Charges in $64 Million Crypto Laundering Scheme
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Washington Man Charged in $64 Million Cryptocurrency Laundering Scheme
The U.S. Department of Justice (DOJ) announced Wednesday that a Newcastle, Washington resident has been indicted on charges related to a cryptocurrency laundering scheme. Geoffrey K. Auyeung, 46, is facing one count “for conspiracy to commit money laundering, and nine counts of money laundering either by concealment or by spending.”
The authorities allege that Auyeung, who was arrested on Aug. 12, deceived investors by posing as an escrow agent for oil and gas investments, but instead transferred their funds into accounts under his control. The announcement details:
Once the funds came into accounts controlled by Auyeung, the money was quickly moved into other accounts, moved offshore, or was used for the purchase of cryptocurrencies, including bitcoin, tether, USD coin, and ethereum, via cryptocurrency exchanges such as Gemini, Bitstamp, and Coinbase.
Investigators from Homeland Security Investigations (HSI) have traced $64 million flowing into 74 different bank accounts tied to Auyeung. The DOJ explained:
Much of the cryptocurrency was further transferred to accounts at the cryptocurrency exchange Binance. Victims were not sent any further information on their investment and Auyeung and others simply stopped responding.
The indictment seeks the forfeiture of approximately $2.3 million seized from Auyeung’s bank accounts. “Millions more of the wire fraud proceeds that were converted to cryptocurrencies are frozen and pending seizure. HSI has confirmed 22 victims with a combined loss of $7.7 million. However, law enforcement believes many more victims may come forward,” the Justice Department noted.
What do you think about the allegations against Geoffrey K. Auyeung and the ongoing investigation into his cryptocurrency laundering scheme? Let us know in the comments section below.
