Washington man sentenced to 5 years for laundering $97 million through cryptocurrency

Key points:

• Washington resident Jeffrey Aueng was sentenced to five years in prison for helping launder nearly $97 million obtained through investment fraud schemes.
• Victims’ funds were routed through dozens of bank accounts and cryptocurrency exchanges before being converted into Bitcoin, Ethereum, USDT, and USDC and transferred overseas.

A U.S. court has sentenced Jeffrey Aueng, a resident of Newcastle, Washington, to five years in federal prison for his role in a large-scale money laundering scheme tied to investment fraud.

According to the U.S. Department of Justice, Aueng helped overseas fraudsters move funds stolen from investors. Approximately $97 million flowed through bank accounts and cryptocurrency platforms under his control.

Investigators found that Aueng established at least nine companies to facilitate the operation. Victims were persuaded to invest in supposedly profitable oil and gas ventures. Fraudsters claimed the funds would be used to purchase oil storage tanks and promised substantial returns.

Once the money was deposited, it was quickly transferred through multiple accounts, sent abroad, or converted into cryptocurrencies, including BTC, ETH, USDT, and USDC. The transactions were conducted through accounts on major platforms such as Coinbase, Gemini, and Bitstamp.

Funds Were Routed to Nigeria and Russia

According to U.S. authorities, a significant portion of the crypto assets was ultimately transferred to Binance accounts controlled by individuals in Nigeria and Russia. Investors never received the promised returns and ultimately lost their funds.

During the scheme, Aueng opened at least 81 bank accounts across 24 financial institutions, as well as 19 accounts on eight cryptocurrency exchanges. Investigators believe the $97.1 million that passed through these accounts represented proceeds of fraud.

For his role in the operation, Aueng received at least $4 million in commissions. Prosecutors said he continued participating in the scheme even after being charged, using accounts opened in his wife's name. Between August 2024 and December 2025, he allegedly earned an additional $400,000 through these activities.

Aueng was arrested in August 2024 and pleaded guilty in February 2025.

In addition to the prison sentence, the court ordered the forfeiture of approximately $2.3 million in cash, an Audi SQ8, roughly $7.1 million in cryptocurrency, and about $300,000 held in bank accounts. The U.S. government is also seeking more than $24 million in restitution for victims.