AML Bitcoin Founder Sentenced to Jail in $10M Crypto Fraud Case Following FBI, IRS Probe
Crypto's wild west claims another scalp.
The founder of AML Bitcoin—once touted as a compliance-friendly alternative—just got shackled with prison time after a federal crackdown. The FBI and IRS tore through the operation, exposing a $10 million scheme that proves even 'regulated' crypto can be a smoke screen.
Another day, another 'trust us' crypto project turning into handcuffs theater. Maybe next time, investors will remember: blockchain doesn’t magically erase human greed.
AML Bitcoin founder misled investors
In the name of developing tech, Andrade funneled more than $2 million of investor funds into luxury personal expenses. This involves buying two Texas properties and high-end cars while laundering the money through a network of bank accounts.
In addition to prison, Andrade faces three years of supervised release. However, a court hearing in September will determine the final forfeiture and restitution amounts. He is scheduled to begin serving his sentence on October 31, 2025.
The case was investigated by the FBI and IRS. The prosecution was led by the US Attorney’s Office for the Northern District of California and the Department of Justice’s Criminal Division.
US Attorney Craig Missakian, while condemning the scheme, mentioned that the defendant made one false claim after another to create the illusion of a legitimate business.
FBI Special Agent in Charge Sanjay Virmani highlighted that Andrade promised innovation but delivered deception. He added that the agency is committed to protecting the public from financial fraud and ensuring justice.
FBI seizes $2.4M in Bitcoin
Recently, the FBI made a clean sweep by seizing over 20 Bitcoins (worth $2.4 million) linked to a ransomware affiliate called “Hors”. This is believed to be part of the Chaos gang, a group with cyber fingerprints all over Texas. The digital bounty was traced to ransomware extortion attacks on companies across the Northern District of Texas.
Today, FBI Dallas made public the seizure of over $1.7 million worth of cryptocurrency as part of ongoing efforts to combat ransomware. The seized funds were traced to a cryptocurrency address allegedly associated with a member of the Chaos ransomware group, known as "Hors," who… pic.twitter.com/uWeIMMGE9J
— FBI Dallas (@FBIDallas) July 28, 2025
According to the FBI in Dallas, they made public the seizure of over $1.7 million worth of cryptos as part of efforts to combat ransomware. This Chaos gang is not an ordinary script kiddie outfit, and it reportedly turns out to be a reincarnation of BlackSuit. The crypto was seized back in April, but the DOJ just filed a civil forfeiture complaint claiming permanent ownership of the money.
As watchdogs keep on taking over the crime, the digital assets industry enters into a correction period after witnessing long bull rallies. The cumulative crypto market cap turned red but marginally to stand at $3.87 trillion. Bitcoin price is still up by 10% over the last 30 days. BTC is trading at an average price of $118,037 at the press time.
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