Rowland Marcus Andrade, creator of the cryptocurrency AML Bitcoin, has been sent to prison for seven years. He was found guilty earlier this year of wire fraud and money laundering.
On July 29, the US Department of Justice stated in a press release that Andrade tricked investors out of $10 million. He used $2 million of that money to buy houses and luxury cars for himself.
Fraudulent Claims About Panama Canal Partnership
Prosecutors explained that Andrade lied to people about AML Bitcoin’s technology and made up fake business deals. One big lie was that the Panama Canal Authority had agreed to use AML Bitcoin for ships passing through the canal.
Back on March 12, 2025, a jury in California convicted that he was guilty. The conviction marks another step in the Justice Department’s crackdown on cryptocurrency-related fraud.
San Francisco US Attorney Craig Missakian condemned Andrade’s actions, 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 funding his lavish lifestyle. Today, Andrade learned the price of his greed.”
Sentencing Details and Asset Forfeiture
In addition to the prison term, Andrade must forfeit assets to compensate his victims, with the court set to determine the restitution amount on September 16. His seven-year sentence, which begins on October 31, will be followed by three years of supervised release, during which he must comply with court conditions, including regular police check-ins.
This sentence falls short of the 17.5-year term prosecutors had requested in a July 22 filing but exceeds the two-year sentence and supervised release sought by Andrade’s legal team.
Political Lobbyist Jack Abramoff’s connection
The case also ties to political lobbyist Jack Abramoff, a convicted criminal who was ordered to pay $55,000 in disgorgement for promoting AML Bitcoin in 2020. Abramoff, previously involved in a scandal involving Native American tribes and casino development, is now permanently barred from securities offerings.
The Securities and Exchange Commission (SEC) paused its lawsuit against Andrade until his case was finished. Now, within 30 days after the case ended, they can have a meeting to check on things.
The case underscores growing scrutiny of crypto fraud and reinforces the legal risks for deceptive founders. It highlights that authorities worldwide are taking strong actions against the fraudsters who trick investors and break their trust in the fast-changing digital money space, and this type of fraud can lead to serious punishment.
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