AML Bitcoin Founder Gets 7-Year Sentence in $10M Crypto Fraud Scandal – Justice Served or Just the Tip of the Iceberg?

Crypto's dark underbelly gets another perp walk. The founder of AML Bitcoin—a name that now reeks of irony—just got slapped with a 7-year prison sentence for running a $10 million fraud scheme. Who said crime doesn’t pay? (It does, until it doesn’t.)

Behind the bars: The DOJ didn’t mince words calling this a 'textbook crypto scam.' Fake compliance software, phantom 'audits,' and the classic 'give us your coins, we’ll make them grow' pitch. Old wine, new blockchain bottles.

Regulators are watching (for once): This sentencing lands as the SEC tightens screws on crypto. Coincidence? Or a warning shot to the next genius who thinks KYC is just a three-letter word to ignore.

Closing thought: Another day, another crypto fraudster learning that 'decentralized' doesn’t mean 'above the law.' But hey—at least he didn’t pull a 'rug pull' and retire in Dubai. Small mercies.

• AML Bitcoin founder Rowland Marcus Andrade was sentenced to 7 years of prison for defrauding investors for $10 million.
• He falsely promoted AML Bitcoin as a government-approved, AML-compliant crypto despite lacking real tech or deals.
• $2 million in investor funds was misused on luxury items instead of blockchain development.

Rowland Marcus Andrade, the AML Bitcoin creator, was sentenced to seven years in federal prison. The guilty verdict came after a jury in California earlier this year found him guilty of money laundering and wire fraud for participating in a scheme that defrauded investors of $10 million.

The U.S. Department of Justice said Tuesday that Andrade lied to the public and potential investors by spreading false claims about AML Bitcoin. He also falsely promoted AML bitcoin as an AML-compliant, government-friendly Bitcoin alternative, despite it lacking real underlying technology.

Rowland Andrade, founder of AML Bitcoin, was sentenced to 84 months in prison for making false representations to investors that netted him $10 million in fraudulent proceeds.

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Among Andrade’s most egregious claims was that the Panama Canal Authority had agreed to use AML Bitcoin for ship passage transactions through the canal.

Federal prosecutors confirmed that no such agreement ever existed, describing the claim as an attempt to mislead investors and artificially inflate the token’s value.

The court also found that Andrade used nearly $2 million of investors’ funds for personal luxuries, including real estate and luxury cars, rather than developing the blockchain platform he had advertised.

U.S. Attorney Craig Missakian criticized Andrade’s actions, stating, “The defendant made false statements repeatedly to create the illusion of a legitimate business.”

Court Rejects Plea Deal in AML Bitcoin Case

Although prosecutors sought a 17.5-year prison term, the court ultimately sentenced Andrade to seven years. His attorneys had requested a significantly lighter sentence of two years followed by supervised release, but the court rejected the plea. After serving his prison sentence, Andrade will also undergo three years of supervised release beginning on October 31, 2025.

In addition to his prison sentence, Andrade will be required to forfeit property he obtained through the scheme. The amount to be forfeited for victim restitution will be determined at a court hearing scheduled for September 16.

The lawsuit also involved disgraced political lobbyist Jack Abramoff, who was ordered in 2020 to pay a $55,000 fine for the unauthorized promotion of AML Bitcoin. Abramoff was also permanently barred from participating in any other securities offerings.

The SEC’s civil suit against Andrade was stayed in January 2021, pending the outcome of the criminal case. With the criminal case now resolved, a status hearing could be requested within 30 days to determine how the regulatory case will proceed.

Andrade’s conviction marks another significant step by U.S. prosecutors in combating crypto-related scams, sending a clear message to the crypto community about the legal consequences of defrauding investors and misusing funds.