AML Bitcoin Founder Gets 7-Year Slammer: Fraud & Laundering Scheme Unraveled

Crypto's dark underbelly gets another perp walk.

The founder of AML Bitcoin—a project that ironically promised anti-money laundering compliance—just got handed a seven-year sentence for running a textbook fraud operation. The DOJ didn't bother with kid gloves.

How it collapsed

Promised bulletproof compliance, delivered Swiss cheese. The 'AML' in the name became the punchline as prosecutors traced dirty money flowing through the operation like a broken faucet. Even by crypto's Wild West standards, this one was brazen.

Regulators sharpen knives

Another notch on the SEC's enforcement belt. The sentence lands as watchdogs globally crack down on 'compliant' crypto projects that can't spell KYC. Maybe next time founders will read the Miranda rights before the cuffs click.

Silver lining? At least he didn't get the 20-year max—proving even judges think crypto sentences should have tokenomics.

Prosecutors: Andrade Faked Panama Canal Deal to Boost AML Bitcoin

Prosecutors detailed how Andrade fabricated claims, including an alleged partnership with the Panama Canal Authority, to convince investors of AML Bitcoin’s legitimacy.

“He exploited numerous investors who put their trust in him, not knowing that their hard-earned money was in fact funding his lavish lifestyle,” Missakian said.

Investigators revealed that Andrade laundered and spent more than $2 million of investor funds on personal expenses, such as real estate in Texas and two luxury vehicles.

His prison sentence, which begins October 31, 2025, will be followed by three years of supervised release.

As a result of an FBI San Francisco investigation 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

Authorities have set a restitution and forfeiture hearing for September 16, 2025, to determine how much Andrade must pay back to his victims.

“Rowland Marcus Andrade promised innovation but delivered deception,” said FBI Special Agent in Charge Sanjay Virmani, highlighting the agency’s commitment to pursuing financial fraud.

Chief Judge Richard Seeborg’s sentencing also includes an order for Andrade to forfeit any ill-gotten gains, pending the outcome of the September hearing.

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

Crypto investors lost over $2.2 billion to hacks, scams, and breaches in the first half of 2025, driven largely by wallet compromises and phishing attacks, according to CertiK’s latest security report.

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

Two major incidents, including Bybit’s $1.5 billion hack in February and Cetus Protocol’s $225 million exploit in May, skewed the year’s losses upward, together accounting for nearly $1.78 billion.

Without these, losses align more closely with previous years at around $690 million.

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

The report also pointed to rising sophistication of phishing schemes and ongoing risks from social engineering, urging crypto users to verify links, avoid suspicious sites, and use hardware wallets.