Federal prosecutors are moving to recover $7.1 million in cryptocurrency for victims of a $97 million fraudulent oil and gas investment scheme. Geoffrey Auyeung of Newcastle has been indicted on charges of laundering proceeds from this scheme, which misled investors into believing they would profit from leasing oil tank storage. Victims sent money to shell companies, including Sea Forest International and Apex Oil and Gas Trading. The fraud involved complex laundering methods through various cryptocurrency accounts, U.S. banks, and international exchanges, with funds notably linked to accounts in Russia and Nigeria. The Justice Department's reliance on blockchain tracing technology has enabled the recovery of these assets, echoing that tracking funds can often be more transparent on a blockchain than in traditional finance. The case underscores the rising intersection of cryptocurrency and international fraud networks, emphasizing the need for diligent regulatory oversight.

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