Crypto Founder Faces Jail Time: The Rise and Fall of AML Bitcoin
Seven Years Behind Bars for Crypto Fraud
Rowland Marcus Andrade, the mastermind behind the cryptocurrency token AML Bitcoin, has been handed a seven-year prison sentence. Earlier this 12 months, a jury found him guilty of wire fraud and money laundering charges.
The Justice Department’s Findings
According to the US Department of Justice, Andrade swindled investors out of a staggering $10 million. Of that, $2 million was funneled into his personal extravagances, including purchasing lavish properties and luxury cars.
Deception and False Promises
Prosecutors revealed that Andrade misled his investors with false claims concerning the technology behind AML Bitcoin and its supposed business ventures. One notable deception involved a fabricated agreement with the Panama Canal Authority, where he falsely claimed the token could be accepted for ships passing through the canal.
Legal Proceedings and Sentencing
While prosecutors initially sought a lengthy 17-and-a-half-year sentence, the ultimate ruling was significantly less. A California jury reached a verdict in March, convicting Andrade of the costs.
A Statement from the US Attorney
“The defendant created an elaborate façade of a cutting-edge cryptocurrency to convince investors of its legitimacy,” stated San Francisco US Attorney Craig Missakian. “Little did they know, their investments were fueling his extravagant lifestyle. Today, Andrade is facing the consequences of his deceit.”
Financial Repercussions
In addition to his prison sentence, Andrade will likely be required to forfeit assets. These assets will likely be used to compensate the victims of his fraudulent schemes. The court is ready to finalize the restitution amount on September 16.
Post-Prison Supervision
After serving his seven-year sentence, Andrade will likely be under supervised release for 3 years. This includes regular check-ins with law enforcement and adherence to court-imposed conditions.
Connections to Notorious Lobbyist Jack Abramoff
Andrade’s tale of deception ties in with Jack Abramoff, a political lobbyist with a checkered past. In 2020, Abramoff faced a $55,000 disgorgement penalty for promoting AML Bitcoin and received a everlasting ban from securities offerings.
Abramoff’s history includes admitting to fraud, tax evasion, and conspiracy to bribe public officials, particularly in a scandal involving Native American tribes and casino developments.
Legal Battles and Ongoing Proceedings
Back in January 2021, a judge paused an SEC lawsuit against Andrade until the resolution of his criminal case. Now that the criminal proceedings have concluded, involved parties may request a standing hearing inside 30 days.
Sentencing Tensions
The court’s decision to impose a seven-year sentence struck a middle ground. While prosecutors pushed for over 17 years behind bars, Andrade’s defense team had argued for a more lenient two-year sentence followed by supervised release.
