Major Crypto Fraud Case Reaches Verdict
In a landmark decision that sends shockwaves through the cryptocurrency industry, Rowland Marcus Andrade, the creator of AML Bitcoin, has been convicted of wire fraud and money laundering in connection with a sophisticated pump-and-dump scheme. The verdict, delivered by a federal jury in the Northern District of California, marks a significant milestone in one of the earliest crypto fraud cases prosecuted by U.S. federal authorities.
The $2 Million Scheme Unveiled
According to court documents, Andrade orchestrated an elaborate fraud through an initial coin offering (ICO) conducted between 2017 and 2018. The scheme involved multiple layers of deception:
- False promises of token conversion to a non-existent cryptocurrency
- Fabricated claims about partnerships with the Panama Canal Authority
- Misappropriation of over $2 million in investor funds
- Purchase of luxury assets including Texas properties and high-end vehicles
High-Profile Connections and Political Intrigue
The case gained additional notoriety due to the involvement of Jack Abramoff, a notorious D.C. lobbyist previously featured in the film “Casino Jack.” Abramoff, named as a co-conspirator, pleaded guilty in 2020 and paid over $50,000 in disgorgement and interest.
Legal Implications and Sentencing
The conviction carries severe consequences for Andrade:
- Up to 20 years imprisonment for wire fraud
- Additional 10 years for money laundering
- Forfeiture of all assets traced to the fraudulent scheme
- Scheduled sentencing in July 2025
Market Impact and Industry Implications
This conviction sends a clear message to the cryptocurrency industry about the serious consequences of fraudulent operations. It demonstrates the increasing sophistication of federal prosecutors in handling crypto-related crimes and their commitment to protecting investors.
Source: CoinDesk