SOUTH LAKE TAHOE, CA — Daniel Chartraw, the founder of Crypto-Pal LLC and TDA Global, was recently indicted on wire fraud charges. The indictment alleges that Chartraw defrauded investors by falsely claiming to have developed a proprietary algorithm capable of generating exceptional returns on cryptocurrency investments. However, instead of investing the money, Chartraw allegedly used the funds to finance his personal lifestyle.
Chartraw’s scam is part of a larger investment scam problem in the U.S. In 2023, the Federal Trade Commission (FTC) reported that consumers lost $4.6 billion to investment scams, with cryptocurrency investment scams accounting for nearly $4 billion of that total.
Cryptocurrency Scams on the Rise
Cryptocurrency scams are particularly dangerous because they often exploit the FOMO (Fear of Missing Out) factor. As cryptocurrencies like Bitcoin continue to hit record highs, such as reaching $100,000 in early December, many investors rush to get involved without fully understanding the risks or technicalities of cryptocurrency trading. President-Elect Trump has even supported the cryptocurrency movement, with plans to make the U.S. the “crypto capital of the planet” and appointing cryptocurrency advocates to key positions, such as Paul Atkins, his nominee for Securities and Exchange Commission (SEC) chair.
However, this interest in cryptocurrency investments also creates the perfect environment for scammers to exploit. These scams are complicated, largely unregulated, and offer the illusion of easy profits, making them attractive to inexperienced investors.
Michael Ackerman’s 2023 Cryptocurrency Scam
The issue of cryptocurrency scams has escalated further with other high-profile cases. In 2023, Michael Ackerman was convicted of running a scam that defrauded investors out of $30 million. Ackerman and his two partners falsely promised monthly returns of over 15% on their cryptocurrency investment fund, claiming to have developed a unique trading algorithm. Ackerman targeted physicians as investors, using one of his partners who was also a physician to help convince victims.
Like Chartraw, Ackerman never delivered on his promises. He falsified records to make it appear that his fund was generating profits, while in reality, it was losing money. Much of the funds raised were stolen to finance his lavish lifestyle.
Protecting Yourself from Cryptocurrency Investment Scams
With the rise in cryptocurrency popularity, it’s essential for potential investors to educate themselves before investing in any digital assets. Scam artists often prey on individuals who don’t fully understand how these investments work or fail to ask the necessary questions before committing large sums of money.
If something sounds too good to be true in the world of cryptocurrency investments, it probably is. Always conduct thorough research, and be cautious when investing in any platform or fund that promises guaranteed high returns without transparent details on the investment process.
