Founder of AML Bitcoin Sentenced to Seven Years in Prison for $10 Million Crypto Fraud
Rowland Marcus Andrade, the founder of the cryptocurrency token AML Bitcoin, has been sentenced to seven years in prison for defrauding investors and engaging in money laundering. This verdict follows his conviction earlier this year on charges of wire fraud and money laundering connected to the fraudulent cryptocurrency scheme.
Details of the Fraud
According to the U.S. Department of Justice, Andrade defrauded investors out of approximately $10 million through AML Bitcoin. Authorities revealed that Andrade misappropriated $2 million from the proceeds of AML Bitcoin sales, using the funds for personal luxury expenses such as purchasing properties and high-end vehicles.
Prosecutors further detailed that Andrade misled investors by making false claims about the underlying technology and business partnerships of AML Bitcoin. Notably, he asserted that the Panama Canal Authority had agreed to allow AML Bitcoin tokens to be used for ships transiting the canal—a claim the DOJ confirmed was completely fabricated, as no such agreement existed.
Legal Proceedings and Sentencing
A jury in California found Andrade guilty in March of wire fraud and money laundering. While prosecutors sought a much harsher sentence of 17 and a half years, the judge sentenced Andrade to seven years in prison. Andrade’s legal team had argued for a much lighter sentence of only two years.
Following his prison term, Andrade will be subjected to three years of supervised release, requiring compliance with court conditions, including regular check-ins with law enforcement.
In addition to incarceration, Andrade is ordered to forfeit assets to help repay victims of his fraudulent scheme. The amount of restitution will be decided in a separate court hearing scheduled for September 16. Andrade’s prison sentence is set to begin on October 31. ### Impact and Related Cases
San Francisco U.S. Attorney Craig Missakian remarked on Andrade’s case, stating: “The defendant made one false claim after another about a sophisticated cryptocurrency offering to create the illusion of a legitimate business. He exploited numerous investors who put their trust in him, not knowing that their hard-earned money was, in fact, funding his lavish lifestyle. Today, Andrade learned the price of his greed.”
In a related development, political lobbyist Jack Abramoff, who promoted AML Bitcoin in 2020, was also penalized. Abramoff—already a convicted criminal for fraud, tax evasion, and conspiring to bribe public officials—was ordered to pay $55,000 in disgorgement and barred permanently from engaging in securities offerings.
Earlier, in January 2021, a federal judge stayed a Securities and Exchange Commission (SEC) lawsuit against Andrade until his criminal case was resolved, with expectations for further judicial status updates following the sentencing.
Broader Context for Crypto Regulation
This case highlights ongoing challenges in the cryptocurrency industry, where fraudulent projects and misleading claims can have devastating financial consequences for investors. Authorities continue to increase scrutiny and enforcement actions targeting deceptive practices and scams within the crypto space.
Sources:
- U.S. Department of Justice
- IRS Criminal Investigation
- Court filings and statements from San Francisco U.S. Attorney’s Office
Published by Cointelegraph | June 2024