Crypto-Pal Fraud Verdict: $1M Lost on Fake No-Risk Guarantees

Federal jurors convicted a former cryptocurrency promoter on fraud charges tied to schemes that cost investors nearly $1 million. The case, announced June 18 by the U.S. Department of Justice, centered on Crypto-Pal LLC and TDA Global LLC, businesses that promised guaranteed high returns with no risk.

Daniel Chartraw, 53, formerly of South Lake Tahoe and Lodi, California, was convicted after an eight-day trial. The schemes ran from March 2021 to February 2022, during which Chartraw and an associate controlled multiple companies and communicated with investors through calls, texts, emails, Microsoft Teams, and Zoom.

“Crypto-Pal was a web-based cryptocurrency trading company that guaranteed high returns with no risk,” the DOJ said in a statement. “At various points, Chartraw also claimed that TDA Global was engaged in supplying jet fuel to airlines or operated its own cryptocurrency trading platform.”

Trial evidence showed Chartraw directed operations while using aliases including “Leonard” and “Leon.” He told associates he needed to conceal his identity due to a prior fraud conviction. Many investors later learned Chartraw controlled the businesses and their accounts.

Bank records became central to the government’s case. Although Chartraw was not a signatory on Crypto-Pal’s business bank account, evidence showed he repeatedly accessed it to withdraw cash, make purchases, and transfer investor funds into accounts he personally controlled.

Victims entered the schemes through personal and professional relationships, including referrals from friends or family. Prosecutors described fabricated account statements, false assurances of growth, and repeated misrepresentations that persuaded investors to send additional cash or cryptocurrency.

When investors sought their funds or questioned delays, Chartraw offered excuses, shifted responsibility, or stopped communicating. Victims received neither returns nor repayment of their principal.

Chartraw faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. Sentencing has not been scheduled.

The verdict follows a broader push by U.S. authorities against crypto investment fraud. The DOJ said a joint public-private operation recently disrupted more than 1.4 million accounts linked to Southeast Asian scam networks.