US Jails Man Over $97 Million Oil Investment Scam Linked to Nigerian-Controlled Crypto Accounts

A United States federal court has sentenced Geoffrey Auyeung, 47, to prison for his role in a $97.1 million international investment fraud and money laundering scheme that funnelled funds through cryptocurrency accounts allegedly controlled by individuals in Nigeria and Russia.

Auyeung was sentenced on June 9, 2026, by U.S. District Judge John Coughenour after pleading guilty to conspiracy to commit money laundering in February. He was also ordered to forfeit $10 million in assets.

How the Scam Worked

According to U.S. prosecutors, the fraud operated between June 2022 and July 2024. Victims were persuaded to invest in what they believed were legitimate oil storage projects in Rotterdam, Netherlands, and Houston, Texas.

Investors were promised substantial returns by leasing oil storage capacity to third parties. To support the scheme, Auyeung created at least nine separate companies that received investor funds through accounts presented as secure escrow accounts.

Authorities said the operation collected approximately $97.1 million through domestic and international bank transfers.

Complex Money Laundering Network

Investigators revealed that Auyeung opened 81 bank accounts across 24 financial institutions and maintained 19 cryptocurrency accounts on eight different crypto exchanges.

After receiving investor funds, the money was quickly moved through multiple bank accounts, transferred overseas, or converted into cryptocurrency.

A significant portion of those crypto assets was allegedly sent to Binance accounts controlled by individuals based in Nigeria and Russia, according to U.S. authorities.

Victims reportedly never received the promised investment returns, and communication eventually stopped completely.

Continued Criminal Activity After Indictment

Prosecutors noted that Auyeung continued participating in the scheme even after he had been indicted.

For approximately 16 months, he allegedly remained in contact with co-conspirators and directed additional investor deposits through bank accounts registered in his wife's name, earning an extra $400,000 in commissions.

Authorities estimate that his total earnings from the scheme exceeded $4 million.

During sentencing, Judge John Coughenour stated that Auyeung "had every reason to know there was something wrong" but continued accepting funds regardless.

One victim travelled from the United Kingdom to attend the sentencing hearing and told Auyeung directly, "You caused a lot of pain."

Assets to Be Forfeited

As part of the court's ruling, Auyeung will surrender:

• Approximately $2.3 million in seized funds.
• An Audi SQ8 luxury vehicle.
• About $7.1 million worth of cryptocurrency held in digital wallets.

The case highlights the growing use of cryptocurrency in cross-border financial crimes and reinforces the importance of stronger anti-money laundering measures and international cooperation among law enforcement agencies.

Do you think cryptocurrency exchanges should implement even stricter verification measures to prevent money laundering, or would that undermine user privacy? Share your thoughts in the comments.