Montana Man Sentenced for Crypto Money Laundering Conspiracies

TYLER, Texas – In a landmark case of cryptocurrency criminality, Randall V. Rule, 73, a resident of Kalispell, Montana, was yesterday sentenced to 10 years in federal prison for his involvement in a cryptocurrency money laundering conspiracy that spanned the Eastern District of Texas.

The jury found Rule guilty of money laundering conspiracy, actual money laundering, and conspiracy to violate the Bank Secrecy Act following a three-day trial. On September 17, 2025, U.S. District Judge Jeremy D. Kernodle issued the sentence of 120 months imprisonment.

“Special Agents from the United States Secret Service and the United States Postal Inspection Service have done an exemplary job in responding to the victimization of our citizens,” said Acting U.S. Attorney Jay R. Combs. “Let scammers know: using cryptocurrency won’t hide your crimes; we’ll find you and prosecute you.”

U.S. Secret Service Resident Agent in Charge Brad Schley emphasized the importance of dismantling sophisticated money laundering networks like Rule’s, stating, “We are honored to work with the dedicated prosecutors at the U.S. Attorney’s Office in the EDTX to seek justice for victims.” Kai Pickens, Inspector in Charge of the Fort Worth Division, reinforced that the U.S. Postal Inspection Service will not tolerate misuse of the mail system for fraudulent activities.

According to court documents, Rule and Gregory C. Nysewander, formerly from Irmo, South Carolina, conspired with others to convert funds from various fraud schemes into cryptocurrency and route them through foreign and domestic accounts. The duo laundered over $2.4 million and violated the Bank Secrecy Act’s money services business requirements. Many victims, including a multi-generational family business, lost their life savings as a result.

This case is part of Operation Take Back America, a Department of Justice initiative targeting illegal immigration, cartels, transnational criminal organizations, and violent crime. The operation aims to protect communities from such perpetrators and secure justice for victims.”

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