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Fraud

Cryptocurrency Founder Sentenced to 84 Months in Prison for Wire Fraud and Money Laundering

Strategic Insights

— 2 min read

The founder of a cryptocurrency, Rowland Marcus Andrade, was sentenced to 84 months in federal prison for wire fraud and money laundering. Andrade, 47, was found guilty after a five-week trial in March 2025, where a jury concluded that he had made false statements to investors about the cryptocurrency, AML Bitcoin, and its purported technology. The scheme raised millions of dollars through false and misleading statements, with Andrade diverting over $2 million in proceeds for personal expenses, including the purchase of two properties in Texas and two luxury automobiles.

Key Takeaways:

  • Rowland Marcus Andrade was sentenced to 84 months in federal prison for wire fraud and money laundering related to the AML Bitcoin cryptocurrency scheme.
  • The scheme raised millions of dollars through false and misleading statements, with Andrade diverting over $2 million in proceeds for personal expenses.
  • The jury found that Andrade made false statements to the public and potential purchasers of AML Bitcoin, including claims that the Panama Canal Authority was close to permitting its use.
  • Andrade was found to have laundered investor funds through a series of bank accounts and used the funds for personal expenses and purchasing properties and automobiles.
  • The prosecution was led by Assistant U.S. Attorneys Christiaan Highsmith, David Ward, and Karen Beausey, with the assistance of Tina Rosenbaum, and is a result of an investigation by the FBI and IRS-CI.
  • Andrade will begin serving his sentence on October 31, 2025, and will be subject to a three-year period of supervised release following his imprisonment.
  • The court ordered a hearing on September 16, 2025, to determine the amount of forfeiture and restitution owed to victims of Andrade's crimes.
  • The sentence emphasizes the ongoing commitment of the U.S. District Attorney's Office to prosecute individuals who undermine the integrity of financial markets and digital asset markets.

Statistics:

  • $10 million: The amount of money defrauded from cryptocurrency investors through the AML Bitcoin scheme.
  • $2 million: The amount of money Andrade diverted from the sale of AML Bitcoin, which he spent on personal expenses.
  • 84 months: The prison sentence handed down to Andrade for wire fraud and money laundering.
  • 2 properties: The two properties in Texas purchased using investor funds.
  • 2 luxury automobiles: The two luxury automobiles purchased using investor funds.

Sources:

  • "United States Attorney's Office for the Northern District of California"
  • "United States District Judge Richard Seeborg"
  • "FBI Special Agent in Charge Sanjay Virmani"
  • "IRS-CI Oakland Field Office Special Agent in Charge Linda Nguyen"

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