AML Bitcoin Creator Receives 7-Year Sentence for Fraud and Money Laundering

Rowland Marcus Andrade, the founder and CEO of NAC Foundation, has been sentenced to seven years in federal prison for wire fraud and money laundering associated with the cryptocurrency initiative AML Bitcoin.

Key Takeaways:

• Rowland Marcus Andrade, the founder of AML Bitcoin, has received a seven-year prison term for wire fraud.
• Andrade deceived investors with misleading assertions, including a fictitious partnership with the Panama Canal.
• A hearing scheduled for September will decide the amount of restitution Andrade is required to pay to the victims.

The US Department of Justice determined that Andrade and his organization misled investors from 2014 to 2019, raising nearly $10 million through deceptive promises regarding the coin’s features, launch schedule, and business potential.

“The defendant made one false assertion after another about a sophisticated cryptocurrency offering to create the appearance of a legitimate enterprise,” stated US Attorney Craig H. Missakian.

Prosecutors: Andrade Fabricated Panama Canal Agreement to Enhance AML Bitcoin

Prosecutors outlined how Andrade concocted claims, including a supposed partnership with the Panama Canal Authority, to persuade investors of AML Bitcoin’s authenticity.

“He took advantage of numerous investors who placed their trust in him, unaware that their hard-earned funds were actually financing his extravagant lifestyle,” Missakian remarked.

Investigators disclosed that Andrade laundered and utilized over $2 million of investor money for personal expenditures, including real estate in Texas and two luxury cars.

His prison term, commencing on October 31, 2025, will be succeeded by three years of supervised release.

As a result of an FBI San Francisco investigation in conjunction with IRS-CI, cryptocurrency founder and CEO Rowland Marcus Andrade was sentenced today to 7 years in prison for a multi-million-dollar fraud scheme. Andrade founded a cryptocurrency called AML Bitcoin. pic.twitter.com/DEjNRqUWSw

— FBI SanFrancisco (@FBISanFrancisco) July 29, 2025

Authorities have scheduled a restitution and forfeiture hearing for September 16, 2025, to ascertain how much Andrade must reimburse his victims.

“Rowland Marcus Andrade promised innovation but delivered deception,” remarked FBI Special Agent in Charge Sanjay Virmani, emphasizing the agency’s dedication to combating financial fraud.

Chief Judge Richard Seeborg’s sentencing also includes a directive for Andrade to forfeit any illicit gains, pending the results of the September hearing.

Crypto Hacks, Scams Cost Investors $2.2B in H1 2025: CertiK

Crypto investors experienced losses exceeding $2.2 billion due to hacks, scams, and breaches in the first half of 2025, primarily driven by wallet compromises and phishing attacks, according to CertiK’s most recent security report.

Wallet breaches alone resulted in $1.7 billion in losses across just 34 incidents, while phishing scams accounted for over $410 million across 132 attacks.

Two significant incidents, including Bybit’s $1.5 billion hack in February and Cetus Protocol’s $225 million exploit in May, inflated the year’s losses, together totaling nearly $1.78 billion.

Excluding these incidents, losses align more closely with previous years at approximately $690 million.

Ethereum remained the primary target, suffering over $1.6 billion in losses across 175 events.

The report also highlighted the increasing sophistication of phishing schemes and ongoing risks from social engineering, urging crypto users to verify links, avoid dubious sites, and utilize hardware wallets.

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