A California jury has sent a clear message about crypto scams. According to the US Department of Justice, Rowland Marcus Andrade will spend seven years in prison after being found guilty of wire fraud and money laundering.
Andrade had pitched a token called AML Bitcoin as a legit way to fight financial crime. In reality, he used roughly $10 million from investors to feed his own lifestyle.
Founder Jailed For Crypto Fraud
Investors believed Andrade’s pitch about anti‑money‑laundering technology. Based on reports, he siphoned off about $2 million for fancy cars and real estate.
The jury convicted him in March on charges that carried decades of potential prison time. Yet Chief US District Judge Richard Seeborg capped the sentence at 84 months, well below the 210 months the government requested.
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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A Fake Panama Canal Deal
Prosecutors pointed to one of the boldest lies: Andrade said the Panama Canal Authority would accept AML Bitcoin for ship tolls. No agreement ever existed.
He repeated that claim to keep interest high and wallets open. The tactic worked long enough to draw in big checks, but it unraveled once investigators dug deeper.
Sentence Far Below Government Request
Andrade’s team had asked for just two years behind bars followed by supervised release. The government argued for 17.5 years.
In the end, seven years will start on October 31, with a restitution hearing set for September 16 to decide how much of his assets must be forfeited. After prison, he’ll be on supervised release for three years, checking in regularly with authorities.
Broader Impact On Crypto Promotion
The case also highlights risks for high‑profile backers. Political lobbyist Jack Abramoff was fined $55,000 for pushing AML Bitcoin in 2020 and barred from future securities offerings.
His role shows that even seasoned promoters can face penalties when they lend credibility to a scam. It’s a warning shot for anyone thinking about slapping a name onto crypto without vetting the tech behind it.
Featured image from Getty Images, chart from TradingView
