Washington man gets five years for laundering $97.1 million fraud proceeds through crypto
Geoffrey K. Auyeung of Newcastle, Washington, was sentenced after authorities said he used dozens of bank and crypto exchange accounts and multiple entities to move fraud proceeds through major tokens.
Geoffrey K. Auyeung of Newcastle, Washington, was sentenced to five years in prison for conspiracy to commit money laundering after prosecutors said he helped move $97.1 million from an investment scam through a network of 81 bank accounts, 19 crypto exchange accounts and at least nine entities. The funds were routed through Gemini, Coinbase and BitStamp and converted into BTC, ETH, USDT and USDC, according to the U.S. Department of Justice as cited by The Block. Prosecutors said he earned at least $4 million from the scheme and another $400,000 after he was indicted. The case highlights how fraud proceeds can be layered through both traditional banking channels and liquid digital assets to complicate tracing and recovery.
- money laundering: The process of disguising the criminal origin of funds by moving or converting them through financial channels.
- stablecoins: Digital tokens designed to hold a steady value, such as USDT and USDC.
- crypto exchange accounts: Accounts on digital asset platforms used to trade, transfer or convert cryptocurrencies.