AML Bitcoin Founder Convicted for $2M Fraud Scheme

Rowland Marcus Andrade, the founder and CEO of AML Bitcoin, has been convicted on charges of wire fraud and money laundering in a California court. The verdict, delivered on March 12, 2023, in the US District Court for the Northern District of California, concluded a lengthy legal battle that began with criminal charges filed in June 2020. The charges were part of a broader scheme to defraud investors, with Andrade facing two felony counts.

Andrade's conviction stems from his role in promoting AML Bitcoin as a cryptocurrency that would comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. He conducted an initial coin offering (ICO) between 2017 and 2018, raising funds under the false premise that AML Bitcoin would be a legitimate and tradable cryptocurrency. However, the project never materialized, and Andrade was found to have diverted over $2 million in proceeds for personal use, including the purchase of real estate and luxury automobiles.

The case also involved Jack Abramoff, a political lobbyist who served prison time for fraud and bribery. Abramoff was named a co-conspirator and pleaded guilty in 2020, agreeing to pay penalties related to the AML Bitcoin scheme. Andrade's defense team attempted to shift blame onto Abramoff and other associates, but the jury ultimately found Andrade guilty of defrauding investors.

Andrade's sentencing hearing is scheduled for July 22, 2023. He faces a maximum penalty of 20 years in prison for wire fraud and 10 years for money laundering. The conviction marks a significant milestone in the prosecution of cryptocurrency-related fraud, setting a precedent for future cases involving similar schemes.

The case highlights the risks associated with investing in cryptocurrencies and the importance of thorough due diligence. Investors are advised to be cautious of promises that seem too good to be true and to verify the legitimacy of any cryptocurrency project before investing. The conviction of Andrade serves as a reminder that fraudulent activities in the cryptocurrency space will be met with severe legal consequences.