Montana Man Convicted in Major Crypto Money Laundering Scheme

A 73-year-old Montana man has been convicted of operating a $2.4 million cryptocurrency money laundering scheme.

Quick Takes

Randall V. Rule, aged 73, was convicted in Tyler, Texas for cryptocurrency money laundering.
The scheme involved romance scams, business email compromises, and real estate scams.
Rule faces up to 20 years in prison per money laundering charge.
The case is part of Operation Crypto Runner targeting high-level criminal activities.

Details of the Conviction

Randall V. Rule, a senior Montana resident, was convicted on all counts of cryptocurrency-based money laundering conspiracy after a thorough three-day trial in Tyler, Texas. Presiding over the case was U.S. District Judge Jeremy D. Kernodle. Rule, together with an associate, Gregory C. Nysewander, faced charges for conspiring to launder over $2.4 million while violating the Bank Secrecy Act.

The scheme employed tactics involving romance scams, business email compromises, and real estate frauds to obscure the origins of illicit funds. Convicting Rule highlights the technological hurdles and adaptive strategies needed by law enforcement to combat these crimes. Rule may now face up to 20 years behind bars for each of the laundering charges against him.

🚨 A 73-year-old Montana man has been charged in a $2.4M crypto money laundering scheme. The DOJ says he conspired to move illicit funds through digital assets.

👉 Read more: https://t.co/OKT7kpNran pic.twitter.com/lD6wFv5Ut6

— crypto.news (@crypto_dot_news) February 28, 2025

Scope of the Scheme

The investigation revealed that Rule and Nysewander executed complex strategies such as converting proceeds of wire and mail fraud into cryptocurrency. The sophisticated maneuvers included making false representations to financial institutions and disguising transactions to avoid detection. These actions were serious violations of established money services business requirements.

“We will not stand by as our citizens are victimized by financial crimes and their life savings are stolen,” Acting U.S. Attorney McGlothin said.

The defendants transferred laundered funds to accounts controlled by co-conspirators. Sentencing is expected after a presentence investigation, determining the punishment based on advisory guidelines and statutory factors.

Operation Crypto Runner

This case forms a significant part of Operation Crypto Runner, an Organized Crime Drug Enforcement Task Forces (OCDETF) operation aimed at dismantling high-level criminal organizations. The U.S. Secret Service and U.S. Postal Inspection Service meticulously conducted the investigation, securing the conviction.

The successful prosecution, led by dedicated Assistant U.S. Attorneys, underlines the collaborative efforts between law enforcement agencies and the legal system. This conviction sends a strong message about the diligent protection of the financial infrastructure of the United States.