From Crypto King to Convict: AML Bitcoin Founder Sentenced to 7 Years

Summary: Rowland Marcus Andrade, the founder of AML Bitcoin, has been sentenced to seven years in prison after defrauding investors of $10 million. The California court found him guilty of wire fraud and money laundering, marking another significant conviction in ongoing efforts to combat crypto-related financial crimes.

Background: Crypto Fraud and False Promises

Rowland Marcus Andrade marketed AML Bitcoin as a cryptocurrency with advanced anti-money laundering features. However, instead of developing the promised technology, Andrade diverted funds for personal gain, spending at least $2 million on luxury cars and real estate.

One of Andrade’s most audacious claims was that the Panama Canal Authority would accept AML Bitcoin for toll payments—an agreement that prosecutors confirmed never existed. Despite this, the false claim helped fuel investor interest and raise millions.

Legal Proceedings and Sentencing

After a federal jury convicted Andrade in March 2024 on multiple counts of fraud, prosecutors sought a 17.5-year sentence. However, Chief U.S. District Judge Richard Seeborg imposed a significantly lighter sentence of 84 months, or seven years. Andrade’s defense had asked for only two years. The sentence begins on October 31, 2024, and will be followed by three years of supervised release. A restitution hearing is scheduled for September 16 to determine the amount of investor funds to be recovered.

Rowland Andrade, founder of AML Bitcoin, was sentenced to 84 months in prison for making false representations to investors that netted him $10 million in fraudulent proceeds.

Click below to read more about this #IRSCI Oakland field office case. https://t.co/lIAmTVZTgh pic.twitter.com/ppkUNmwwG2

— IRS Criminal Investigation (@IRS_CI) July 29, 2025

Market and Legal Repercussions

The AML Bitcoin fraud case serves as a cautionary tale for both investors and promoters within the crypto sector. Prominent lobbyist Jack Abramoff was fined $55,000 and banned from future securities promotion for his role in boosting AML Bitcoin’s visibility during its initial pitch in 2020. The case underscores the legal risks of promoting unvetted crypto products.

Industry Impact and Investor Caution

The Andrade sentencing adds to the growing list of enforcement actions against crypto founders who misuse investor funds. It also illustrates that flashy marketing and regulatory buzzwords, such as anti-money laundering, can be used to mislead potential backers. Regulatory bodies are increasingly cracking down on fraudulent ICOs and misleading token sales, reaffirming the need for due diligence in digital asset investments.

Featured image from Getty Images, chart from TradingView