AML Bitcoin Founder Sentenced to Seven Years for $10M Investor Fraud
Highlights:
- Andrade has been sentenced to seven years for defrauding investors through false claims linked to the AML Bitcoin project.
- Andrade used over two million dollars from investors to buy luxury cars and real estate in Texas.
- Crypto crimes have surged, with over two billion dollars lost to hacks and phishing attacks in six months.
Rowland Marcus Andrade, the founder of U.S.-based NAC Foundation, will serve seven years in prison for defrauding investors. A federal court in California delivered the sentence after a jury found Andrade guilty of wire fraud and money laundering charges.
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As a result of an FBI San Francisco investigation with IRS-CI, cryptocurrency founder and CEO Rowland Marcus Andrade was sentenced today to 7 years in prison for a multi-million-dollar fraud scheme. Andrade founded a cryptocurrency called AML Bitcoin. pic.twitter.com/DEjNRqUWSw
— FBI SanFrancisco (@FBISanFrancisco) July 29, 2025
Andrade raised $10 million through misleading claims linked to his cryptocurrency project, AML Bitcoin. He used $2 million from investor funds to cover personal expenses, including two luxury cars and properties in Texas. The court rejected Andrade’s request for a two-year sentence and sided with the jury’s findings. Prosecutors had asked for more than 17 years behind bars, but the court handed down 84 months. His sentence includes three years of supervised release after he serves his prison time. He must report regularly to authorities and follow court-imposed conditions during that period. The sentence officially begins on October 31.
Andrade Used False Claims and Spent Investor Money on Lavish Items
The accused convinced investors to put in millions as he positioned AML Bitcoin as a secure and advanced digital asset. He said the token came with compliance tools integrated into it and high levels of privacy and security. He also announced a deal with the Panama Canal Authority, saying the token would be used for ship payments. However, the court proceedings confirmed that there was no agreement with the said authority. The claim served to boost investor confidence during the funding period.
The U.S. Department of Justice stated that Andrade created an illusion of a legitimate crypto operation. He used deceptive marketing strategies and exaggerated promises to convince people to invest. According to court filings, Andrade spent over $2 million on personal luxury items. These included two high-end vehicles and real estate properties in Texas. None of these purchases benefited the token’s development or its investors. The NAC Foundation, which Andrade operated, served as the official company behind AML Bitcoin. It helped create promotional materials and presented the project as a major step forward in crypto security.
AML Bitcoin Founder Sentenced as Crypto Crimes Surge
The AML Bitcoin founder sentenced this week must return to court on September 16 for a restitution and forfeiture hearing. The court will determine how much the project founder must repay to his victims. After completing his sentence, he must report his activities and follow specific court conditions during the supervised release period.
This sentencing comes at a time when crypto crimes continue to rise in 2025. According to CertiK, the largest blockchain security auditor, over $2.47 billion has already been lost to scams and hacks in the first half of the year. Wallet breaches caused most of the losses, with phishing attacks and major protocol exploits pushing the figure higher. The recent CoinDCX hack led to the loss of $44 million.
🚨 The Q2 + H1 2025 Hack3d Report is here.
$2.47B lost in the first half of the year.
$801M lost in Q2 alone.
Phishing and wallet compromise dominated the threat landscape.Dive into the data👇🧵 pic.twitter.com/Sxa6AGejGK
— CertiK (@CertiK) June 30, 2025
In a related case, Jack Abramoff, a political lobbyist who promoted AML Bitcoin, received a $55,000 fine and a lifetime ban from securities offerings. A separate SEC lawsuit against Andrade was paused in 2021.
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Austin Mwendia
Austin Mwendia is a passionate crypto journalist with three years of experience. He has contributed to various media outlets, covering blockchain technology, market analysis, and financial trends. He is committed to educating readers and expanding the adoption of blockchain and decentralized finance.
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