A 47-year-old crypto CEO has been sentenced to seven years in prison for his role in a $10 million fraud scheme that misled victims using a fake cryptocurrency called AML Bitcoin.

On Tuesday, Rowland Marcus Andrade, founder and CEO of the now-defunct AML Bitcoin project, received his sentence from Chief US District Judge Richard Seeborg in San Francisco. 

The court has also ordered a forfeiture hearing scheduled for September 16 to determine how much of Andrade’s assets will be returned to the victims.

Federal prosecutors said Andrade ran a years-long scheme that falsely marketed AML Bitcoin as a cryptocurrency with built-in anti-money laundering technology. 

He told investors the coin featured advanced security features and claimed it would soon be adopted by major institutions, including the Panama Canal Authority.

Investigators later found that no such technology existed, and the Panama Canal deal never materialised.

Andrade launched AML Bitcoin with promises that it complied with US regulatory standards and could track criminal activity, giving it an edge over other cryptocurrencies. 

These claims drew in millions from retail investors who believed they were backing a legitimate and innovative project. 

However, prosecutors said Andrade fabricated key details about the token’s capabilities and business partnerships to lure in victims.

According to court documents, Andrade diverted more than $2 million in investor funds for personal use. 

He used the money to purchase two properties in Texas and luxury cars, while misleading patrons that the funds were being used for the development and promotion of AML Bitcoin.

“The defendant made one false claim after another about a sophisticated cryptocurrency offering to create the illusion of a legitimate business,” said United States Attorney Craig H. Missakian, adding that Andrade “exploited numerous investors who put their trust in him, not knowing that their hard-earned money was in fact funding his lavish lifestyle.”

Federal agents were able to trace the laundered money through multiple bank accounts tied to Andrade.

Jurors found Andrade guilty in March 2025 after a five-week trial that detailed how he misled investors and funnelled their money into personal luxuries. 

During sentencing, federal prosecutors urged the court to impose a 17.5-year prison term, arguing that the scale of Andrade’s deception and the financial harm to victims warranted a lengthy sentence.

Andrade’s legal team, in contrast, asked for just two years in prison followed by supervised release, claiming he did not intend to cause harm and had cooperated with investigators. 

In the end, Chief Judge Richard Seeborg handed down a seven-year sentence followed by three years of supervised release under court-mandated conditions.

The Department of Justice has ramped up enforcement actions against cryptocurrency-related fraud in recent months. 

Over the past week alone, the DOJ has pursued several high-profile forfeiture cases targeting digital assets lost to scams and frauds.

In one case, the DOJ filed a civil complaint to recover over $7 million in crypto tied to a $97 million oil and gas investment scam. 

Separately, prosecutors moved to seize over 20 Bitcoin linked to a ransomware operator affiliated with a newly discovered ransomware group.

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