Bitcoin News Today: AML Bitcoin Founder Sentenced to 7 Years for $5M Crypto Fraud Scheme

Rowland Marcus Andrade, the founder and CEO of the defunct AML Bitcoin project, has been sentenced to seven years in federal prison after being convicted of wire fraud and money laundering in connection with a multi-million-dollar scheme targeting cryptocurrency investors. The sentence, handed down by Chief Judge Charles B. Seeborg of the U.S. District Court for the Northern District of California, marks a significant legal outcome in a case that highlighted the misuse of early-stage crypto innovation as a cover for personal financial gain [1].

The fraud scheme, which unfolded between 2017 and 2018, involved the initial coin offering (ICO) of the AML Bitcoin token. Marketed as a cutting-edge cryptocurrency with built-in anti-money laundering (AML) and know-your-customer (KYC) features, the project attracted over $5 million in investments during its launch phase. However, according to court documents, the technology behind the token never materialized, and many of the claims made by Andrade were fabricated or misleading. These included a now-disproven assertion that the Panama Canal Authority had considered accepting the token as a means of payment [1].

Investigations by the U.S. Attorney’s Office revealed that Andrade used the proceeds from the ICO to fund a lavish personal lifestyle. Over $2 million of the funds were spent on personal expenses, including the purchase of two luxury vehicles and two properties in Texas. Court evidence also showed that the defendant used a network of bank accounts to launder the illicit funds [1].

United States Attorney Craig H. Missakian condemned the scheme, stating that the defendant had fabricated a narrative of legitimacy to exploit investors who were unaware their money was being used to fund personal luxury. “Today, Andrade learned the price of his greed,” Missakian said, emphasizing the Department of Justice’s commitment to holding individuals accountable for undermining the integrity of digital asset markets [1].

In addition to the prison sentence, Andrade was ordered to serve three years of supervised release and pay full restitution to victims. A hearing is scheduled for September 16 to determine the exact amount of forfeiture and compensation owed. The court also noted that the project had previously attracted regulatory scrutiny. In 2020, the SEC and DOJ filed a complaint revealing that no platform or product had ever existed for the AML Bitcoin token [1].

The case also involved Jack Abramoff, a former lobbyist who was previously involved in promoting the project and was required to pay $50,000 in disgorgement and interest [1].

The sentencing underscores the growing regulatory and judicial focus on cryptocurrency-related fraud, especially in the early days of the industry when oversight was limited. As the digital asset sector continues to evolve, this case serves as a cautionary tale for investors and entrepreneurs alike.

Source: [1] [7 Years in Prison for AML Bitcoin Founder and CEO After a Multi-Million-Dollar Fraud](https://coinmarketcap.com/community/articles/688fdd01b3afd664ab382f73/)