In a major enforcement action, Rowland Marcus Andrade, the creator of the cryptocurrency AML Bitcoin, has been sentenced to seven years in federal prison following convictions of wire fraud and money laundering. The judgment marks a significant step in holding crypto project founders accountable for misleading investors.
$10 Million Fraud Scheme Uncovered
Andrade misled investors into contributing nearly $10 million to his crypto project under the pretense of developing a secure, regulatory-compliant digital currency. However, authorities uncovered that over $2 million of investor funds were funneled into luxury purchases and personal expenses, including real estate and vehicles.
Andrade falsely claimed that AML Bitcoin was being adopted by major institutions—including a fabricated deal with the Panama Canal Authority.
Such statements were pivotal in attracting retail investors and securing large funding rounds, despite no verifiable agreements backing those claims.
Conviction and Sentencing Details
A California jury delivered the guilty verdict in March, citing multiple violations involving fraud and financial deception. While the prosecution sought a 17.5-year sentence, the final ruling imposed seven years in prison, followed by three years of supervised release.
The court has ordered asset forfeiture to reimburse victims, with a restitution hearing scheduled for September 16.
Andrade will begin serving his sentence on October 31, and during his supervised release period, he must comply with legal oversight, including regular law enforcement check-ins.
Fallout Includes Prominent Lobbyist Sanctions
The AML Bitcoin project was also tied to former political lobbyist Jack Abramoff, who faced a permanent ban from securities promotions and was ordered to pay $55,000 in penalties. Abramoff had promoted the token during its initial marketing phases, despite his past convictions for fraud and bribery.
Legal Proceedings to Continue
The sentencing closes the criminal proceedings, but civil cases—such as the stayed SEC lawsuit from 2021—may soon resume. Parties involved have a 30-day window to request updates now that the criminal matter has concluded.
Final Thoughts
This case underscores the urgent need for transparency and accountability in the cryptocurrency space. Investors are reminded to scrutinize claims made by token founders and seek verifiable data before participating in any fundraising activities.
Crypto founders who deceive the public will face serious legal consequences—fraudulent innovation will not be tolerated.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.