Santa Monica Man Sentenced for Multi-Million Dollar Crypto Scheme

From 2017 to 2021, He Operated a VirtuL-Currency Money Services Business Known as Digital Coin Strategies LLC

A 33-year-old Santa Monica man, Charles James Randol, was sentenced to four months in prison for helping launder millions through a cryptocurrency exchange. 

In September, Randol agreed to plead guilty to a federal charge for allowing his cryptocurrency-cash exchange company to aid scammers and drug traffickers in laundering millions of dollars in criminal proceeds.

Randol’s plea agreement involves admitting guilt to a single-count information for failure to maintain an effective anti-money laundering (AML) program. Both the information and plea agreement were filed in United States District Court in downtown Los Angeles

According to the plea agreement, from October 2017 to July 2021, Randol operated a virtual-currency money services business known as Digital Coin Strategies LLC, offering cryptocurrency-cash exchange services. 

He engaged in various methods, including in-person transactions, automated kiosks in multiple counties, and Bitcoin-for-cash transactions for unknown individuals who mailed substantial amounts of U.S. currency. 

Randol advertised falsely on his company website, claiming compliance with AML regulations, while, in reality, he repeatedly violated federal law and his own AML policies by facilitating suspicious currency exchange transactions and concealing them from law enforcement.

He engaged in in-person cash transactions exceeding $10,000 with anonymous individuals, violating AML policies. He exchanged $273,940 in cash for Bitcoin without proper identification, contravening regulations.

Additionally, Randol facilitated Bitcoin-for-cash transactions after receiving large cash shipments from anonymous senders via mail. He conducted these transactions without due diligence on the source of funds, often receiving suspiciously packaged cash hidden inside various items. Despite a brief hiatus due to law enforcement scrutiny, Randol resumed this activity, contributing to the laundering of fraud proceeds.

Furthermore, Randol’s deficient AML practices allowed criminals to structure and launder funds through Bitcoin kiosks he operated in various locations. He set up “test” accounts against compliance advice, enabling customers to avoid currency reporting requirements.

Randol’s failure to comply with AML requirements resulted in his business laundering funds from a New Jersey victim deceived into sending money for a fictitious legal issue. Despite hiring a compliance officer, Randol continued risky practices, leading to an investigation by the FBI, Homeland Security Investigations, Federal Deposit Insurance Corporation Office of Inspector General, and the United States Postal Inspection Service.

in Hard, News
Related Posts

THIS WEEKEND: Fire Fundraiser Block Party Coming to Washington Square

February 6, 2025

February 6, 2025

Reggae performances, comedy acts and more to be featured Nalu Vida will host a community block party on Feb. 8...

Open Arms Art Show Runs Through Mar. 22 in Burbank

February 6, 2025

February 6, 2025

Opening Exhibition Saturday Feb. 8 from 12 to 8p.m. More than an art show, the Open Arms Exhibition is an...

Quiet Luxury: What’s Inside the New Regent Boutique and Sweet July

February 6, 2025

February 6, 2025

The Regent Santa Monica Beach, known for its perfect Santa Monica getaways, or local dining at its Mediterranean-based restaurant Orla...

10-Year-Old Palisades Girl Wins Martial Arts Medals Weeks After Losing Home to Fire

February 6, 2025

February 6, 2025

Savoian, a green belt in Yoshukai karate, trained at Gerry Blanck’s Martial Arts Center in Pacific Palisades Just weeks after...

(Photos) Kamala Harris Visits Destruction of Palisades Fire

February 6, 2025

February 6, 2025

Harris spoke with first responders, service providers, and evacuees about recovery efforts and resources Former Vice President Kamala Harris joined...

Pacific Palisades Farmers Market Finds New Temporary Home in Brentwood After Fire

February 5, 2025

February 5, 2025

Displaced Vendors and Shoppers Reunite at the Brentwood Farmers Market. The Pacific Palisades Farmers Market, displaced by the recent Palisades...

SaMoHi Science Teacher Arrested for Alleged Student Relationship

February 5, 2025

February 5, 2025

Ingo Gaida Faces Misdemeanor Charges After Investigation into Inappropriate Conduct A Santa Monica High School science teacher was arrested Wednesday,...

Dead Body Found on Sands of Venice Beach, Investigation Underway

February 5, 2025

February 5, 2025

A death investigation is underway By Zach Armstrong A death investigation is underway after local officials discovered a dead body...

Will Rogers State Beach to Become Temporary Hazardous Waste Site

February 5, 2025

February 5, 2025

The site, located on flat, open land near the burn zone, will serve as a staging area where materials will...

Santa Monica’s Earth, Wind & Flour to Close After More Than Four Decades

February 5, 2025

February 5, 2025

Known for its laid-back atmosphere and commitment to traditional California Italian cuisine, Earth, Wind & Flour has remained largely unchanged...

Supermarket Reopens in Palisades Following Wildfire Damage

February 4, 2025

February 4, 2025

The store is currently operating on a generator until power is fully restored The Vons supermarket at 17380 W Sunset...

Palisades Charter High School to Host Benefit for Students Affected by Fires

February 4, 2025

February 4, 2025

Proceeds from the benefit will go toward replacing essential student resources lost in the fires, including sporting equipment, musical instruments,...

World-Renowned Trumpeter Plays on Ruins of Palisades Home

February 4, 2025

February 4, 2025

Lindemann, a professor at UCLA and a former lead trumpeter with the Canadian Brass, has performed in prestigious venues worldwide...

Santa Monica Continues to Seek Partnership to Reopen Civic Auditorium

February 4, 2025

February 4, 2025

The selection process for a development team began in late 2023, when the City Council invited Letters of Interest from...

(Video) Los Angeles Marathon Returns For 40th Anniversary

February 4, 2025

February 4, 2025

Register at mccourtfoundation.org Register at https://t.co/JUuzwhVeun pic.twitter.com/3m3wiyoBm4 — Palisades News (@PalisadesNewsLA) February 4, 2025