Santa Monica man admits guilt in cryptocurrency case.

Man Pleads⁣ Guilty ​to Laundering Millions Through Cryptocurrency Business

A Santa Monica man has pleaded guilty to using his cryptocurrency​ cash exchange business to launder millions of dollars in criminal proceeds. Charles Randol,‌ 33, entered his plea to failing to maintain an effective anti-money laundering program, a crime that carries a prison sentence of up to five years.

Sentencing⁢ for Randol is scheduled for January 17.

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From October 2017 to July 2021, Randol operated a⁢ virtual ​currency money⁣ services‌ business‍ called Digital Coin Strategies⁣ LLC. The company provided cryptocurrency cash exchange services for a commission.

Randol conducted⁢ transactions with anonymous ‍customers in person, utilizing a network of automated ‌kiosks in Los Angeles, Orange, and Riverside counties to convert cash ‍to Bitcoin⁢ and vice versa. He also facilitated⁢ Bitcoin-for-cash transactions ⁢for unknown individuals who sent large amounts of U.S. currency to him, including to post office boxes under his control.

In ‌his plea‍ agreement, Randol‌ admitted to repeatedly violating federal‍ law ​and his ⁢company’s policies by facilitating⁢ suspicious currency exchange transactions and attempting to conceal them from law enforcement.

For instance, Randol frequently ⁣engaged in cash‌ transactions exceeding ‍$10,000 with anonymous⁤ individuals, using​ monikers like Puppet Shariff, White Jetta, Yogurt‌ Monster, and Hood.

Specifically, Randol confessed to participating in transactions from October⁤ 2020 to January 2021,⁤ exchanging a total of $273,940 in cash for ​Bitcoin⁣ without obtaining any identifying information from the‌ buyers or⁣ the source of ⁢the​ funds—a clear violation of⁣ the Bank Secrecy‌ Act.

Prosecutors also‍ revealed ‍that Randol allowed criminals to launder funds through his Bitcoin kiosks ⁣located in various malls, ‍gas stations, and convenience stores across Los Angeles, Glendale, Santa​ Clarita, Huntington Beach, Santa Ana, and Riverside.

What penalties does Charles Randol face for using cryptocurrency to launder money obtained‌ through illegal activities?

Way Crash

A motorcycle officer from the Manhattan Beach Police Department was killed‌ in a tragic accident on the 405 freeway.

Randol operated a virtual⁣ currency exchange business from 2015 to 2019. During this time, he knowingly exchanged cash for virtual currencies without conducting any due diligence to identify or report suspicious transactions, as required by law.

According to⁢ the⁢ plea agreement, Randol exchanged over $9 million in cash for virtual currencies, knowing that a significant portion of that money represented proceeds from various illegal activities, including identity theft, drug trafficking, and computer fraud.

Authorities became aware of Randol’s illicit activities after​ conducting ⁣an investigation into‍ a drug trafficking organization that was using virtual currencies to launder their profits. The investigation ⁤led​ them to Randol’s cryptocurrency business,⁢ which was facilitating the conversion of their illegal gains into seemingly legitimate virtual currencies.

As part of his plea agreement, Randol has agreed to forfeit approximately $2.4 million in cryptocurrency, as well as several luxury ⁤vehicles and properties that were purchased with the illicit funds.

Assistant U.S. Attorney Steven Sun said, “This case highlights the importance of⁤ robust anti-money laundering measures within the cryptocurrency industry. We will continue to ‍work with our law enforcement partners to identify and prosecute individuals who use virtual currencies to facilitate money laundering and other criminal activities.”

The case against Randol was investigated by⁢ the⁣ Internal Revenue ​Service Criminal Investigation Division, the Drug ⁤Enforcement Administration, and the Santa Monica Police Department. Additional assistance was provided by the Financial Crimes ​Enforcement Network and the U.S. Attorney’s Office’s Money ‌Laundering and Asset Recovery Section.

Randol’s guilty plea serves as a reminder that ​the use of cryptocurrency can easily ⁢be exploited for illegal activities, and authorities are committed to cracking down on those who seek to use this technology to launder‍ money and hide the ‌proceeds of their criminal ‌enterprises.

With the growing popularity of cryptocurrency, it is crucial for businesses operating in this industry to implement strict anti-money laundering protocols and ensure compliance with all relevant laws and regulations. Failure to do so can ‌result in severe penalties, including hefty fines and lengthy prison sentences.

The case against Randol ⁤also underscores the importance of‍ collaboration ⁣between law enforcement agencies and financial⁣ institutions in detecting and preventing money laundering and other financial crimes involving cryptocurrencies. By working together, they are able to disrupt and dismantle criminal networks that depend on these digital currencies to facilitate their illicit financial⁣ activities.

As ⁤the cryptocurrency industry continues to evolve, it is imperative that authorities and ⁢businesses remain vigilant in combating money laundering and⁢ other forms of financial fraud. Only through a concerted effort can we effectively address the challenges posed by this new and rapidly⁤ evolving technology.

Sentencing⁢ for Charles Randol will serve as a significant milestone in the fight against cryptocurrency-related money laundering, sending a clear‌ message to individuals involved in such activities ⁢that they will be held accountable for their actions.

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