Key Insights:
- Rowland Marcus Andrade misled investors with false claims about AML Bitcoin’s technology and partnerships.
- Over $2 million from investor funds was used for luxury items and personal gain.
- The case shows the increase in regulatory enforcement against crypto-related financial crimes.
The founder of AML Bitcoin, Rowland Marcus Andrade, has been sentenced to seven years in prison after being convicted of wire fraud and money laundering. The case is related to a $10 million crypto scam and stands as a major step forward in the crackdown on crypto crime.
AML Bitcoin was promoted as a crypto built with advanced anti-money laundering features. However, prosecutors found that Andrade lied to investors to raise funds, and then misused the money for personal gain.
How the AML Bitcoin Scam Unfolded
Andrade launched AML Bitcoin and promised investors a secure and regulation-friendly crypto asset. He claimed that the token would meet worldwide compliance standards, which made it attractive to investors.
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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However, those claims turned out to be false. According to the U.S. Department of Justice, Andrade told investors that the token had official deals in place, like one with the Panama Canal Authority, when no such agreements existed.
He also promoted the idea that AML Bitcoin had advanced technical features that did not exist in practice.
Instead of using the funds to develop the project, Andrade diverted at least $2 million to support a lavish lifestyle. He spent money on luxury vehicles, real estate and other personal expenses, while continuing to promote the token.
False Claims and Fake Partnerships
One of the biggest lies that Andrade told investors was that ships would soon be able to use AML Bitcoin to pass through the Panama Canal. That, of course, was a lie. Prosecutors used this example to show how Andrade created a false image of success to attract more investors.
Andrade used buzzwords and complex jargon to mislead people into thinking they were investing in a next-generation crypto. However, there was no real utility behind the project. Only marketing and false promises.
Prosecutors Push for Tougher Penalties
Andrade received a seven year sentence. However, this is lower than the 17 and a half years prosecutors had requested. Still, it is far more than the two years his defense team argued for.
U.S. Attorney Craig Missakian pointed out the damage caused by Andrade’s lies, saying “the defendant made one false claim after another. He exploited numerous investors who put their trust in him.”
The court has also ordered Andrade to forfeit assets obtained through fraud. These will be used to pay restitution to the victims and the exact amount will be decided in a follow-up hearing, which is now scheduled for September 16.
AML Bitcoin’s Connection to Jack Abramoff
The AML Bitcoin case also drew attention due to its link to Jack Abramoff, a well-known political lobbyist and convicted fraudster.
Abramoff promoted the token five years ago, and was later fined $55,000. He was also permanently banned from participating in securities offerings.
This added another layer of controversy to the AML Bitcoin saga and reinforced the idea that the entire project was based more ron hype and manipulation than an actual product.
Overall, the industry must now move toward accountability, and this case might just be the catalyst that pushes it forward.
