A federal jury in the Northern District of California convicted Rowland Marcus Andrade, a cryptocurrency entrepreneur, of wire fraud and money laundering related to the sale of AML Bitcoin. The charges stemmed from an initial coin offering Andrade conducted for AML Bitcoin in 2017 and 2018. Court filings alleged that Andrade falsely promised investors that AML Bitcoin tokens would be converted into a tradeable AML Bitcoin currency, which never materialized.
This case, one of the first and longest-running crypto “pump-and-dump” cases involving U.S. federal prosecutors, also implicated lobbyist Jack Abramoff as a co-conspirator. Abramoff pleaded guilty in 2020 and paid over $50,000 in disgorgement and interest.
The U.S. Department of Justice accused Andrade of diverting over $2 million from the sale of AML Bitcoin for personal expenses, including the purchase of properties and luxury cars. Andrade also made false claims about AML Bitcoin being approved for use in the Panama Canal.
Acting United States Attorney Patrick D. Robbins emphasized that deceiving investors for personal gain is illegal and that those who do so will be held accountable. Andrade is set to be sentenced in July and faces a maximum penalty of 20 years in prison for wire fraud and 10 years for money laundering, as well as forfeiture of property acquired through his crimes.
