Daniel Chartraw, 53, formerly of South Lake Tahoe and Lodi, was convicted by a federal jury after an eight-day trial for his role in cryptocurrency and investment fraud schemes that cost investors nearly $1 million, the U.S. Attorney's Office for the Eastern District of California announced. Chartraw operated schemes between March 2021 and February 2022 using cryptocurrency companies, false guarantees, aliases, fabricated account statements, and promises of high returns with no risk. The verdict adds to the growing list of crypto fraud prosecutions where technology changed but core tactics remained familiar: guaranteed profit, false trust, and blocked withdrawals.
Chartraw Operated Crypto-Pal and TDA Global with False Investment Claims
According to evidence presented at trial, Chartraw and an associate controlled several companies between March 2021 and February 2022, 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 cryptocurrency trading platform.
Prosecutors said none of the funds were invested as represented, and investors received neither returns nor their principal. U.S. Attorney Eric Grant of the U.S. Attorney's Office for the Eastern District of California stated: "This verdict sends a clear message: individuals who exploit the trust of others and steal through deception will be held accountable. The defendant lied to investors and caused serious financial and emotional harm. Our office will continue to pursue those who use emerging technologies, including cryptocurrency, as vehicles for fraud."
Chartraw Used Aliases and Fake Account Statements to Control Investor Funds
The government said Chartraw used aliases including "Leonard" or "Leon" and told associates he needed to hide his identity because of a prior fraud conviction. Investors later learned that Chartraw controlled the businesses and their accounts.
Prosecutors said Chartraw repeatedly accessed the Crypto-Pal business bank account to withdraw cash, make purchases, and move investor funds to accounts he personally controlled, even though he was not a signatory on the account. False account statements, reassurances of growth, personal referrals, professional relationships, and delays around withdrawals were also part of the conduct described at trial.
FBI Reports $11 Billion in Cryptocurrency Complaint Losses
The FBI said its 2025 Internet Crime Report showed cyber-enabled crimes cost Americans nearly $21 billion. IC3 received 1,008,597 total complaints, including about 453,000 cyber-enabled fraud complaints with more than $17.7 billion in reported losses.
Crypto-related complaints produced the largest losses. The FBI said Americans who filed complaints involving cryptocurrency reported 181,565 complaints and more than $11 billion in losses. Investment fraud accounted for nearly 49% of all scam-related losses.
Fraud Schemes Relied on Personal Referrals and Trust Networks
Prosecutors said some victims were referred through friends or family and were convinced to transfer cryptocurrency or cash after promises that their money would be traded. This use of trust networks is increasingly common in crypto fraud cases.
Chartraw Faces Sentencing on September 28, 2026
Chartraw is scheduled to be sentenced by Senior U.S. District Judge William B. Shubb on September 28, 2026. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. The actual sentence will be determined by the court after statutory factors and federal sentencing guidelines are considered.
The FBI conducted the investigation. Assistant U.S. Attorneys Jessica Delaney and J. Douglas Harman are prosecuting the case.
FAQ
What was Daniel Chartraw convicted of?
Daniel Chartraw was convicted by a federal jury after an eight-day trial for cryptocurrency and investment fraud schemes that operated between March 2021 and February 2022 through companies including Crypto-Pal LLC and TDA Global LLC, costing investors nearly $1 million.
When is Daniel Chartraw scheduled to be sentenced?
Chartraw is scheduled to be sentenced by Senior U.S. District Judge William B. Shubb on September 28, 2026. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count.
How much did cryptocurrency-related fraud cost Americans according to the FBI?
The FBI's 2025 Internet Crime Report stated that Americans who filed complaints involving cryptocurrency reported 181,565 complaints and more than $11 billion in losses, representing the largest category of cyber-enabled crime losses.
