Rowland Marcus Andrade, founder of the cryptocurrency exchange AML Bitcoin, has been found guilty of wire fraud and money laundering in a California court. The jury reached its decision during a trial on March 12, 2024, where Andrade was accused of deceiving investors in a fraudulent scheme. This case began with criminal charges in June 2020, alongside a civil lawsuit from the SEC against Andrade and the NAC Foundation he led. Andrade falsely claimed that his cryptocurrency would meet anti-money laundering regulations, raising over $2 million for an initial coin offering that never materialized. Andrade is scheduled for sentencing on July 22, facing up to 30 years in prison.
The cryptocurrency community is facing a significant setback as Rowland Marcus Andrade, the founder of AML Bitcoin, has been found guilty of wire fraud and money laundering. This verdict came from a jury in the US District Court for the Northern District of California on March 12. The case dates back to 2020 when authorities first charged Andrade with multiple counts related to a scheme designed to defraud unsuspecting investors.
Andrade’s AML Bitcoin was supposedly tied to Anti-Money Laundering regulations. However, U.S. officials accused him of using false claims to attract investments. According to Linda Nguyen, a special agent at the IRS Criminal Investigation division, Andrade’s fabrications led individuals to invest their savings into a cryptocurrency that never delivered on its promises. Instead of building a legitimate project, he reportedly misappropriated over $2 million raised during the initial coin offering from 2017 to 2018 and spent it on personal luxuries like real estate and expensive cars.
The case against Andrade is notable not only for the criminal verdict but also for its ties to political lobbyist Jack Abramoff. The SEC launched a civil case against Andrade around the same time, which has been temporarily paused pending the outcome of his criminal proceedings. A judge agreed to stay this civil lawsuit in 2021, but it may resume soon now that Andrade has been convicted.
The fallout from this case extends beyond Andrade, highlighting the challenges and risks associated with cryptocurrencies. Investors must remain vigilant, as scams can often masquerade as legitimate opportunities. Andrade is scheduled for sentencing on July 22, where he faces up to 30 years in prison combined for both charges.
As the crypto landscape continues to evolve, this case serves as a stark reminder of the importance of due diligence and scrutinizing the claims made by cryptocurrency projects. Stay informed to protect your investments from potential frauds in the ever-changing cryptocurrency Market.
Tags: cryptocurrency news, AML Bitcoin, Rowland Marcus Andrade, wire fraud, money laundering, SEC, crypto scams, financial crime.
What happened to the creator of AML Bitcoin?
The creator of AML Bitcoin was found guilty of wire fraud and money laundering. This meant he used his position to illegally take money from investors and hide the origins of these funds.
What is AML Bitcoin?
AML Bitcoin was supposed to be a cryptocurrency designed to help fight money laundering. It aimed to follow strict rules and regulations, but the creator’s illegal activities overshadowed its intended purpose.
Why was he convicted?
He was convicted because he misled investors about his business and mishandled their money. Authorities found that he was involved in a scheme to defraud people.
What are the consequences of his actions?
The consequences include legal penalties such as prison time and fines. This can also lead to a loss of trust in similar cryptocurrency projects, making it harder for legitimate businesses to thrive.
How can investors protect themselves from fraud like this in the future?
To stay safe, investors should research any cryptocurrency they want to invest in. Look for clear information, check for licenses, and always be cautious of deals that seem too good to be true.