Washington Man Sentenced to 5 Years for $100M Crypto Laundering Scheme

What happened: Geoffrey K. Auyeung of Newcastle, Washington, received a five-year prison sentence for laundering $97.1 million in scam proceeds for overseas conspirators. The scheme, which ran from 2022 to 2024, involved opening 81 bank accounts and 19 crypto exchange accounts—including on Gemini, Bitstamp, Coinbase, and Binance—to move funds in BTC, ETH, USDT, and USDC. Auyeung personally earned around $4 million in commissions and continued laundering through his wife’s accounts after indictment.

Why it matters: The case underscores the persistent use of crypto for large-scale money laundering, despite increasing regulatory scrutiny. The DOJ’s successful prosecution—resulting in the forfeiture of millions in cash, crypto, and assets—signals a tightening enforcement environment, particularly for those facilitating cross-border financial crimes. The sophisticated use of both traditional and digital financial channels highlights ongoing challenges for compliance teams and regulators.

Source: The Block