From Crypto King to Prison: AML Bitcoin Founder Gets 7-Year Sentence – A Cautionary Tale for Crypto’s Wild West
The crypto world's latest fall from grace just got a prison sentence. The founder of AML Bitcoin—once hailed as a pioneer—is now trading his Lambo for a jumpsuit after a federal judge slammed him with seven years behind bars.
How the mighty fall: From 'disruptor' to defendant in record time.
The DOJ didn't mince words: 'This wasn't innovation—it was old-school fraud with a blockchain veneer.' Meanwhile, crypto true believers are already spinning this as 'regulatory overreach'—because nothing says 'decentralized ethos' like begging for bailouts when your scam collapses.
Funny how these 'banking revolutionaries' always end up using the same playbook: private jets, offshore accounts, and inevitably... orange jumpsuits. Maybe Satoshi was onto something with that whole 'anonymous founder' thing.
One thing's certain: The SEC won't need to mine this case for evidence—the paper trail was about as subtle as a Bitcoin ATM in a Miami nightclub.
Founder Jailed For Crypto Fraud
Investors believed Andrade’s pitch about anti‑money‑laundering technology. Based on reports, he siphoned off about $2 million for fancy cars and real estate.
The jury convicted him in March on charges that carried decades of potential prison time. Yet Chief US District Judge Richard Seeborg capped the sentence at 84 months, well below the 210 months the government requested.
Rowland Andrade, founder of AML Bitcoin, was sentenced to 84 months in prison for making false representations to investors that netted him $10 million in fraudulent proceeds.
Click below to read more about this #IRSCI Oakland field office case. https://t.co/lIAmTVZTgh pic.twitter.com/ppkUNmwwG2
— IRS Criminal Investigation (@IRS_CI) July 29, 2025
A Fake Panama Canal Deal
Prosecutors pointed to one of the boldest lies: Andrade said the Panama Canal Authority would accept AML bitcoin for ship tolls. No agreement ever existed.
He repeated that claim to keep interest high and wallets open. The tactic worked long enough to draw in big checks, but it unraveled once investigators dug deeper.
Andrade’s team had asked for just two years behind bars followed by supervised release. The government argued for 17.5 years.
In the end, seven years will start on October 31, with a restitution hearing set for September 16 to decide how much of his assets must be forfeited. After prison, he’ll be on supervised release for three years, checking in regularly with authorities.
Broader Impact On Crypto PromotionThe case also highlights risks for high‑profile backers. Political lobbyist Jack Abramoff was fined $55,000 for pushing AML Bitcoin in 2020 and barred from future securities offerings.
His role shows that even seasoned promoters can face penalties when they lend credibility to a scam. It’s a warning shot for anyone thinking about slapping a name onto crypto without vetting the tech behind it.Featured image from Getty Images, chart from TradingView
