Jury Convicts Crypto-Pal Promoter in $1M Crypto Fraud

A federal jury on June 18 found Daniel Chartraw guilty for operating Crypto-Pal LLC and related companies that promised guaranteed, no‑risk cryptocurrency returns and led to almost $1 million in investor losses. The scheme ran from March 2021 through February 2022 and involved victims across the United States.

Prosecutors described Crypto-Pal as a web-based cryptocurrency trading business that guaranteed high returns with no risk. Evidence presented at the eight-day trial showed Chartraw, 53, formerly of South Lake Tahoe and Lodi, California, and an associate managed multiple business lines and communicated with investors by phone, text, email, Microsoft Teams and Zoom to solicit funds.

Bank records were central to the case. Although Chartraw was not a listed signatory on Crypto-Pal’s business account, trial evidence showed repeated access to that account to withdraw cash, make purchases and transfer investor money into accounts he controlled. Prosecutors introduced fabricated account statements and other documents that they said misled investors about account balances and returns.

The case also involved TDA Global LLC, which prosecutors say was advertised at different times as a supplier of jet fuel to airlines and as a separate cryptocurrency trading platform. Chartraw used aliases including “Leonard” and “Leon,” and told associates he hid his identity because of a prior fraud conviction. Trial testimony and records established that he exercised control over the businesses and their accounts.

Victims entered the schemes through personal referrals, family and other contacts. Prosecutors described repeated misrepresentations and false assurances that persuaded some investors to send additional cash or cryptocurrency and to recruit others. When investors sought repayment or questioned delays, Chartraw provided excuses, shifted responsibility, or stopped communicating, and many never recovered principal or promised returns.

The Justice Department summarized the operation as a trading company that guaranteed high, no‑risk returns. Chartraw faces federal penalties that include up to 20 years in prison and a $250,000 fine for each count. Sentencing and any restitution orders have not yet been scheduled. Further legal steps will follow through the federal court process.