Sentencing Due for Santa Monica Man in Cryptocurrency Case

Story Highlights

Cryptocurrency Crime in Santa Monica: Charles Randol, a 33-year-old man from Santa Monica, is set for sentencing on a federal charge related to his cryptocurrency exchange business, which was used for laundering criminal proceeds.

Guilty Plea and Potential Sentence: Randol pleaded guilty in September to failing to maintain an effective anti-money laundering program. This offense carries a potential prison sentence of up to five years, as per the U.S. Attorney’s Office.

Operation of Digital Coin Strategies LLC: From October 2017 to July 2021, Randol operated Digital Coin Strategies LLC, a virtual-currency money services business offering cryptocurrency cash exchange services for a commission.

In-Person Transactions and Kiosk Network: Randol conducted face-to-face transactions and operated a network of automated kiosks in Los Angeles, Orange, and Riverside counties for Bitcoin exchanges. He also handled Bitcoin-for-cash transactions through postal deliveries.

Violation of Federal Law and Company Policies: Admitted in his plea agreement, Randol facilitated suspicious currency exchange transactions, often exceeding $10,000, with anonymous clients using nicknames like Puppet Shariff and Yogurt Monster. He intentionally concealed these activities from law enforcement.

Specific Transactions and Violations of the Bank Secrecy Act: Between October 2020 and January 2021, Randol executed transactions totaling $273,940 in cash for Bitcoin, neglecting to collect any identification or information about the buyers or the origins of the funds, a direct violation of the Bank Secrecy Act.

Use of Bitcoin Kiosks for Money Laundering: Criminals were allowed to launder funds through Randol’s Bitcoin kiosks located in various public spots across several cities, including Los Angeles, Glendale, and Santa Ana.

LOS ANGELES – A Santa Monica man who used his cryptocurrency cash exchange business to launder millions of dollars in criminal proceeds is set to be sentenced Wednesday on a federal charge.

Charles Randol, 33, pleaded guilty in September to failing to maintain an effective anti-money laundering program, a crime that carries a prison sentence of up to five years, according to the U.S. Attorney’s Office.

From October 2017 to July 2021, Randol owned and operated a virtual- currency money services business known as Digital Coin Strategies LLC. The company offered cryptocurrency cash exchange services for a commission.

Randol met anonymous customers in person to complete transactions, controlling and operating a network of automated kiosks in Los Angeles, Orange and Riverside counties that converted cash to Bitcoin and vice versa. He also conducted Bitcoin-for-cash transactions for unknown people who mailed large amounts of U.S. currency to him, including to post office boxes that he controlled, papers filed in Los Angeles federal court show.

Randol admitted in his plea agreement to repeatedly violating federal law and his company’s own policies by facilitating suspicious currency exchange transactions and taking steps to conceal them from law enforcement.

For example, Randol frequently conducted in-person cash transactions that exceeded $10,000 with anonymous or pseudo-anonymous individuals, including people Randol knew only by such monikers as Puppet Shariff, White Jetta, Yogurt Monster and Hood.

In his plea agreement, Randol admitted to engaging in specific transactions from October 2020 to January 2021 in which he exchanged a total of $273,940 in cash for Bitcoin without requesting a name, proof of identity, Social Security number or any other information about the buyer or the source of the funds being exchanged — violations of the Bank Secrecy Act.

Randol also allowed criminals to structure and launder funds through his Bitcoin kiosks in malls, gas stations and convenience stores in Los Angeles, Glendale, Santa Clarita, Huntington Beach, Santa Ana and Riverside, prosecutors said.