A federal jury in the Eastern District of California found Daniel Chartraw guilty after an eight-day trial in a cryptocurrency and investment fraud case that prosecutors said cost investors nearly $1 million. The U.S. Attorney’s Office said Chartraw, 53, was tied to multiple schemes built on false promises, sham business claims, and fabricated records.
Crypto-Pal and TDA Global were marketed with false business claims
Trial evidence showed that between March 2021 and February 2022, Chartraw and an associate controlled several entities, including Crypto-Pal LLC and TDA Global LLC. Prosecutors said Crypto-Pal was presented as a web-based cryptocurrency trading company that guaranteed high returns with no risk. TDA Global was described at different times as a jet fuel supplier to airlines or as a crypto trading platform.
According to prosecutors, investors were told their funds would be used in active business and trading operations. The government said that did not happen. The money was not invested as represented, and investors received neither profits nor their principal back.
U.S. Attorney Eric Grant said the verdict showed that people who exploit trust and steal through deception will be held accountable. He said the defendant lied to investors, caused serious financial and emotional harm, and that the office would keep pursuing fraud involving emerging technologies, including cryptocurrency.
Aliases, fake statements, and withdrawal delays were part of the conduct
The government said Chartraw used aliases including “Leonard” and “Leon,” and told associates he needed to hide his identity because of a prior fraud conviction. Investors later learned that he controlled the businesses and their accounts.
Prosecutors also said that although Chartraw was not a signatory on the Crypto-Pal business bank account, he repeatedly accessed it to withdraw cash, make purchases, and move investor money to accounts he personally controlled. Other conduct described at trial included false account statements, repeated assurances that investments were growing, personal referrals, professional connections, and delays tied to withdrawal requests.
FBI figures show the scale of crypto-linked losses
The dollar amount in this case is far smaller than some major crypto collapses, but the broader problem is much larger. In its 2025 Internet Crime Report, the FBI said cyber-enabled crimes cost Americans nearly $21 billion. IC3 received 1,008,597 complaints in total, including about 453,000 cyber-enabled fraud complaints with more than $17.7 billion in reported losses.
Complaints involving cryptocurrency produced the largest losses. The FBI said Americans filed 181,565 cryptocurrency-related complaints, reporting more than $11 billion in losses. Investment fraud accounted for nearly 49% of all scam-related losses.
Sentencing is scheduled for September 28, 2026
Prosecutors said some victims were referred by friends or family members and were persuaded to transfer cryptocurrency or cash after being told the funds would be traded. The case shows that crypto fraud does not require a major platform or a public token sale. Personal trust networks, guaranteed-return pitches, and blocked withdrawals can be enough to cause substantial losses.
Chartraw is scheduled to be sentenced on September 28, 2026, by Senior U.S. District Judge William B. Shubb. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. The FBI investigated the case, and Assistant U.S. Attorneys Jessica Delaney and J. Douglas Harman are prosecuting it.