Rowland Andrade, the founder of AML Bitcoin, has been convicted of fraud and money laundering after making false claims to raise millions of dollars from investors.
Rowland Marcus Andrade, the founder of the AML Bitcoin project, has just been convicted by the U.S. Federal Court of fraud and money laundering related to illegal fundraising. The verdict was delivered after a five-week trial in the Northern District of California Court, concluding one of the notable cryptocurrency fraud cases in recent years.
Empty promises and the harsh truth about AML Bitcoin
During the fundraising process in 2017 and 2018, Andrade made a series of false statements about the project's technology. The defendant claimed that AML Bitcoin had superior technology compared to Bit and that the Panama Canal Authority was considering allowing payment of transit fees in this currency. However, according to court records, AML Bit was never actually implemented.
Evidence presented at the trial showed that Andrade used more than $2 million of the raised Capital for personal purposes, including purchasing real estate and luxury vehicles, after laundering the money through multiple bank accounts. This behavior seriously violated securities and fundraising regulations.
IRS Special Agent Linda Nguyen commented: "Mr. Andrade's blatant lies lured and deceived investors, causing them to put money into a cryptocurrency with completely fabricated features. But there was nothing 'advanced' about this at all. Rowland Marcus Andrade stole innocent people's money and used it to enrich himself."
Andrade will be sentenced in July and faces a maximum of 20 years in prison for fraud and 10 years for money laundering. Additionally, the court will order the forfeiture of all illegally obtained assets.
This case is particularly notable due to the involvement of Jack Abramoff - a famous Republican lobbyist who was previously sentenced to six years in prison for corruption and has served four years. Abramoff's story was adapted into the film "Casino Jack", reflecting a major political scandal.
The U.S. Securities and Exchange Commission (SEC) had previously filed a civil lawsuit against Andrade and the NAC Foundation, the issuer of AML Bit. The lawsuit was temporarily suspended in 2021 to await the outcome of the criminal case. According to the SEC, Andrade and Abramoff raised $5.6 million from 2,400 investors, with Andrade allegedly using $1.1 million for personal purposes.
Abramoff has agreed to plead guilty in the lawsuit and repay more than $50,000 in illegal proceeds. Both were charged with violating securities fraud and securities registration laws, while Abramoff also faced allegations of violating broker-dealer registration regulations.
