Rowland Marcus Andrade has been sentenced to seven years in federal prison for orchestrating a fraudulent cryptocurrency scheme that defrauded investors of $10 million through the so-called “AML Bitcoin” project. The conviction for wire fraud and money laundering represents a landmark legal action against cryptocurrency scams.
Andrade deceived investors with false claims about AML Bitcoin’s proprietary technology and fabricated partnerships to lend artificial legitimacy to the scheme. Prosecutors revealed he diverted $2 million of investor funds for personal luxury expenditures, including vehicles and vacations.
The court will determine the final restitution amount for victims at a September 16 hearing. Following his prison term, Andrade will be subject to five years of court supervision with mandatory compliance verification.
Co-defendant Jack Abramoff, the lobbyist who promoted AML Bitcoin, faces separate penalties including $55,000 in restitution and a lifetime ban from promoting securities. Prosecutors initially sought a 17.5-year sentence for Andrade, making the seven-year ruling a closely watched benchmark for future cryptocurrency fraud prosecutions.