Crypto Scam Exposed: AML Bitcoin CEO Faces Conviction
AML Bitcoin CEO Rowland Marcus Andrade was found guilty of wire fraud and money laundering by a federal jury in California after a five-week trial for misleading investors.
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According to a press release from the U.S. Department of Justice, Andrade used over $2 million from the AML Bitcoin sale for personal expenses, including the purchase of two properties in Texas and luxury cars.
The 47-year-old convict faces up to 30 years in prison. He is scheduled for sentencing on July 22, 2025. For wire fraud, he faces a maximum penalty of 20 years, and for money laundering, up to 10 years in prison.
What’s the Story Behind the AML Bitcoin Scam?
The fraud originated in 2017 when AML Bitcoin CEO Rowland Marcus Andrade, along with political lobbyist Jack Abramoff, began promoting the AML Bitcoin cryptocurrency.
They falsely claimed the token was superior to Bitcoin, suggesting that multiple governments were interested in using it and promising to advertise the project during the Super Bowl.
Between July 2017 and December 2018, they raised around $5.6 million from over 2,400 investors by selling tokens through the NAC Foundation.
In June 2020, the U.S. Securities and Exchange Commission (SEC) charged NAC, Andrade, and Abramoff with conducting a fraudulent, unregistered crypto offering. The SEC alleged that Andrade directed market manipulation and used the profits for personal expenses.
Andrade was arrested on June 23, 2020, in Missouri City, Texas. Abramoff, charged with conspiracy and violations of the U.S. Lobbying Disclosure Act, faces a maximum sentence of 5 years in prison and a fine of $250,000.
Broader Context of Cryptocurrency Fraud
The AML Bitcoin case is part of a series of recent enforcement actions targeting fraudulent activities in the cryptocurrency space. For instance, Alexander Mashinsky, founder of the failed crypto lending platform Celsius Network, pleaded guilty to federal fraud charges in New York.
Mashinsky admitted to manipulating the price of Celsius's proprietary token to sell his own holdings at inflated prices, netting around $48 million before the company's collapse in 2022.
In another notable case, Larry Dean Harmon, operator of the cryptocurrency mixer Helix, was sentenced to three years in prison for money laundering. Harmon's platform processed more than 354,468 bitcoins (valued at over $311 million at the time) linked primarily to darknet drug markets.
Related: Nebraska Enacts New Crypto ATM Regulations: What Will Change?
How to Protect Yourself from Cryptocurrency Scams
It’s important to know how to protect yourself to avoid losing funds to scams. First, always verify the legitimacy of a project before investing. Research the team behind the project, check for third-party audits, and ensure the project has a transparent whitepaper. Be cautious of offers that sound too good to be true, such as promises of high, guaranteed returns with little risk.
Also, make sure you're using trusted exchanges and wallets that offer strong security, such as two-factor authentication (2FA). Never share your personal information with anyone, and be extra cautious of unsolicited messages asking for money or sensitive details.
Stay updated on the latest scams, and always trust your gut—if something feels off, it’s okay to walk away.
Related: Can You Really Live Off Crypto? Here’s What It Takes
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