Blab Crypto
California Man Convicted of Multi-Million Dollar Cryptocurrency Fraud Scheme
In a Sacramento courtroom, a man named Daniel Chartraw faced the full weight of the law after a year‑long scheme that siphoned nearly one million dollars from unsuspecting investors.
A federal jury found the 53‑year‑old former resident of South Lake Tahoe and Lodi guilty on Thursday of running a series of fraudulent cryptocurrency schemes that drained almost $1 million from a network of investors.
The verdict followed an eight‑day trial that began on March 22, 2026. According to the United States Department of Justice (DOJ), Chartraw and an associate controlled two companies—Crypto‑Pal LLC and TDA Global LLC—between March 2021 and February 2022. Prosecutors showed that Chartraw presented both entities as legitimate crypto‑trading platforms, promising high returns with no risk.
Crypto‑Pal was marketed as a web‑based trading company that allegedly yielded consistent profits, while TDA Global was falsely portrayed as a jet‑fuel supplier to airlines or as a crypto‑trading platform of its own. No evidence supported either claim.
Chartraw kept investors in the dark by communicating through phone calls, text messages, email, and virtual meetings on Microsoft Teams and Zoom. He used aliases such as “Leonard” or “Leon” and repeatedly told contacts that he needed to conceal his identity because of a prior fraud conviction. Many investors only learned that he was the sole controller of the companies and their bank accounts when they attempted to recover their money.
The DOJ alleged that Chartraw accessed the Crypto‑Pal business bank account to withdraw cash, make purchases, and transfer investor funds to accounts he personally controlled, even though he was not a signatory. He also fabricated account statements and made false assurances of growth to persuade victims to invest additional funds. When investors tried to recover their money or raised concerns about delays, Chartraw either offered excuses, deflected responsibility, or simply stopped communicating.
In several cases, victims were referred to Chartraw through friends or family and were convinced to transfer cryptocurrency or cash based on promises that their money would be actively traded. None of the funds were ever invested as represented. Across all schemes, investors received neither returns nor the return of their principal.
The investigation was led by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorneys Jessica Delaney and J. Douglas Harman prosecuted the case.
Chartraw is scheduled to be sentenced by Senior U.S. District Judge William B. Shubb on September 28. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. The DOJ said the actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines.
The case illustrates how emerging technologies, including cryptocurrency, can be exploited as vehicles for fraud. It also underscores the DOJ’s commitment to pursuing individuals who exploit trust and deceive investors.
The sentencing hearing will decide whether Chartraw’s actions result in a prison term, a fine, restitution to victims, or a combination of those penalties. Until then, the case remains a reminder that investors should conduct thorough due diligence before committing funds to unverified crypto‑trading ventures.
The DOJ has not announced any plans to pursue additional charges or civil claims against Chartraw’s associates. The outcome of the sentencing hearing may influence future enforcement actions against similar fraud schemes.
The case also highlights the role of federal courts in addressing financial crimes that cross state lines and involve digital assets. It demonstrates that the legal system can adapt to the evolving nature of cryptocurrency‑related fraud.
For now, the verdict stands, and investors who were defrauded by Chartraw’s schemes will await the sentencing decision and any potential restitution.
A federal jury found the 53‑year‑old former resident of South Lake Tahoe and Lodi guilty on Thursday of running a series of fraudulent cryptocurrency schemes that drained almost $1 million from a network of investors.
The verdict followed an eight‑day trial that began on March 22, 2026. According to the United States Department of Justice (DOJ), Chartraw and an associate controlled two companies—Crypto‑Pal LLC and TDA Global LLC—between March 2021 and February 2022. Prosecutors showed that Chartraw presented both entities as legitimate crypto‑trading platforms, promising high returns with no risk.
Crypto‑Pal was marketed as a web‑based trading company that allegedly yielded consistent profits, while TDA Global was falsely portrayed as a jet‑fuel supplier to airlines or as a crypto‑trading platform of its own. No evidence supported either claim.
Chartraw kept investors in the dark by communicating through phone calls, text messages, email, and virtual meetings on Microsoft Teams and Zoom. He used aliases such as “Leonard” or “Leon” and repeatedly told contacts that he needed to conceal his identity because of a prior fraud conviction. Many investors only learned that he was the sole controller of the companies and their bank accounts when they attempted to recover their money.
The DOJ alleged that Chartraw accessed the Crypto‑Pal business bank account to withdraw cash, make purchases, and transfer investor funds to accounts he personally controlled, even though he was not a signatory. He also fabricated account statements and made false assurances of growth to persuade victims to invest additional funds. When investors tried to recover their money or raised concerns about delays, Chartraw either offered excuses, deflected responsibility, or simply stopped communicating.
In several cases, victims were referred to Chartraw through friends or family and were convinced to transfer cryptocurrency or cash based on promises that their money would be actively traded. None of the funds were ever invested as represented. Across all schemes, investors received neither returns nor the return of their principal.
The investigation was led by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorneys Jessica Delaney and J. Douglas Harman prosecuted the case.
Chartraw is scheduled to be sentenced by Senior U.S. District Judge William B. Shubb on September 28. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. The DOJ said the actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines.
The case illustrates how emerging technologies, including cryptocurrency, can be exploited as vehicles for fraud. It also underscores the DOJ’s commitment to pursuing individuals who exploit trust and deceive investors.
The sentencing hearing will decide whether Chartraw’s actions result in a prison term, a fine, restitution to victims, or a combination of those penalties. Until then, the case remains a reminder that investors should conduct thorough due diligence before committing funds to unverified crypto‑trading ventures.
The DOJ has not announced any plans to pursue additional charges or civil claims against Chartraw’s associates. The outcome of the sentencing hearing may influence future enforcement actions against similar fraud schemes.
The case also highlights the role of federal courts in addressing financial crimes that cross state lines and involve digital assets. It demonstrates that the legal system can adapt to the evolving nature of cryptocurrency‑related fraud.
For now, the verdict stands, and investors who were defrauded by Chartraw’s schemes will await the sentencing decision and any potential restitution.
