A former resident of Kalispell, Montana, has been found guilty by a federal jury in Texas on charges related to a cryptocurrency money laundering conspiracy. Randall V. Rule, aged 73, along with Gregory C. Nysewander from South Carolina, faced multiple counts including money laundering and conspiracy to violate the Bank Secrecy Act. The indictment, handed down in November 2022, alleged that the duo conspired to launder proceeds from various fraud schemes through digital currencies. Over $2.4 million was reportedly involved in this operation. Rule now faces up to 20 years in prison for each federal charge at sentencing, which has yet to be scheduled. This case highlights the ongoing efforts by U.S. authorities to combat financial crimes facilitated by cryptocurrencies.

The trial revealed that Rule and Nysewander were part of a complex scheme involving the conversion of illicit funds into cryptocurrency. These funds originated from romance scams, business email compromises, and real estate frauds. The defendants allegedly used these fraudulent means to acquire substantial amounts of money, which they then converted into cryptocurrency. The funds were subsequently transferred to accounts controlled by both domestic and foreign co-conspirators. Throughout the conspiracy, the duo made deliberate efforts to conceal the true nature of their activities. They provided misleading instructions to victims and co-conspirators, labeling wire transfers as "loan repayments" or "advertising" to avoid detection. Additionally, they submitted false information when opening accounts and communicating with financial institutions and cryptocurrency exchanges.

The investigation uncovered that Rule and Nysewander had engaged in extensive coordination with others to facilitate the laundering process. Their actions included converting funds from various types of fraud into cryptocurrency and ensuring that these transactions remained hidden from law enforcement. The duo also violated the Bank Secrecy Act by failing to comply with the requirements for money services businesses. This multi-faceted approach allowed them to launder over $2.4 million before being caught. The case underscores the sophisticated methods employed by criminals to exploit cryptocurrency's anonymity features.

This conviction is a significant victory for law enforcement agencies working tirelessly to protect citizens from financial crimes. Acting U.S. Attorney Abe McGlothin Jr. emphasized the commitment to pursuing cases against those who facilitate such crimes by laundering criminal proceeds. The U.S. Secret Service also praised the collaboration between investigative teams and prosecutors in bringing this case to justice. As part of Operation Crypto Runner, an initiative aimed at disrupting high-level criminal organizations, this case demonstrates the effectiveness of a coordinated, intelligence-driven approach. With the potential for lengthy prison terms, this verdict sends a strong message about the consequences of engaging in cryptocurrency-based money laundering.