The recent verdict in California serves as a significant warning signal regarding the dangers of cryptocurrency fraud. Rowland Marcus Andrade has been sentenced to seven years in federal prison after being convicted on multiple counts of fraud and money laundering.
Andrade’s venture involved marketing AML Bitcoin as a revolutionary solution to combat illicit financial activities, but instead, he misappropriated approximately $10 million from unsuspecting investors for personal gains.
Jail Time for Cryptocurrency Misrepresentation
Investors were drawn in by Andrade’s convincing narrative about a cutting-edge anti-money laundering system. Reports indicate that he diverted around $2 million for extravagant purchases, including luxury vehicles and property.
The jury found him guilty of charges that could have resulted in decades of imprisonment, but Chief US District Judge Richard Seeborg ultimately limited the sentence to 84 months—significantly shorter than the 210 months sought by the prosecution.
Rowland Andrade, founder of AML Bitcoin, has been sentenced to 84 months in prison for deceiving investors and securing $10 million through fraudulent means.
Learn more about this case via the #IRSCI. Link to details here.
— IRS Criminal Investigation (@IRS_CI) July 29, 2025
The Panama Canal Deception
Among the most outrageous claims made by Andrade was the assertion that the Panama Canal Authority would permit the use of AML Bitcoin for paying ship tolls. However, this agreement was fabricated.
This falsehood was repeatedly leveraged to maintain investor interest, ultimately leading to significant financial commitments. However, the facade began to crumble when law enforcement started their investigation.
The sentence was considerably less than what the government had anticipated, as Andrade’s legal team had initially sought a mere two years of incarceration followed by supervised release. The government, however, had pushed for a lengthier 17.5-year sentence.
The prison term will commence on October 31, with a restitution hearing planned for September 16 to ascertain how much of his illicitly gained assets will be returned. Following his release, he will undergo three years of supervised release, during which he must regularly report to authorities.
The Ripple Effect on Crypto Marketing
This case underscores the significant risks associated with prominent figures endorsing cryptocurrency projects. Political strategist Jack Abramoff faced a $55,000 penalty for endorsing AML Bitcoin back in 2020 and is now barred from participating in future securities offerings.
His experience serves as a cautionary tale for those who consider attaching their credibility to dubious cryptocurrency ventures without doing proper due diligence. It emphasizes the importance of vetting projects to protect not just investors, but also one’s own reputation in the industry.
Image from Getty Images; chart sourced from TradingView
