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 accused of misrepresenting the legitimacy and potential of AML Bitcoin tokens.

Andrade's scheme involved an initial coin offering (ICO) between 2017 and 2018, during which he falsely claimed that AML Bitcoin would comply with anti-money laundering (AML) and Know Your Customer (KYC) regulations. He also made false claims about partnerships, including an alleged agreement with the Panama Canal Authority to use AML Bitcoin for international shipping, which prosecutors stated did not exist. The total amount of funds Andrade diverted for personal use exceeded $2 million, with expenditures on real estate, luxury automobiles, and personal expenses.

The case also involved Jack Abramoff, a political lobbyist who served prison time for previous convictions. Abramoff was named a co-conspirator and pleaded guilty in 2020, agreeing to pay over $50,000 in penalties related to the AML Bitcoin scheme. Andrade's defense team attempted to shift blame onto Abramoff and other business associates, but the jury ultimately found Andrade guilty of defrauding investors.

Andrade's conviction marks a significant milestone in the prosecution of cryptocurrency-related fraud. The case highlights the risks associated with ICOs and the importance of regulatory compliance in the cryptocurrency industry. The U.S. Department of Justice (DOJ) emphasized that raising money through lies and misrepresentations is unlawful, and Andrade's conviction sets a precedent for future prosecutions in similar cases.

Andrade is scheduled to return to court for a sentencing hearing on July 22, 2023. He faces a maximum penalty of 20 years in prison for the wire fraud count and 10 years for the money laundering count. The conviction underscores the need for vigilance and due diligence in the cryptocurrency market, as well as the consequences of engaging in fraudulent activities.