A California jury has convicted cryptocurrency entrepreneur Rowland Marcus Andrade of wire fraud and money laundering in connection with his AML Bitcoin token scheme, bringing closure to one of the earliest crypto fraud cases prosecuted by federal authorities.

The Downfall of a Crypto Entrepreneur

Andrade, who resides in Texas, was found guilty Wednesday in the Northern District of California after misleading investors during an initial coin offering (ICO) for AML Bitcoin in 2017 and 2018.

Prosecutors successfully argued that Andrade deceived investors by falsely promising that their AML Bitcoin tokens would eventually convert into a tradeable cryptocurrency—one that deliberately mimicked the name of the legitimate Bitcoin to attract investors. This promised cryptocurrency never materialized.

According to the Department of Justice, Andrade misappropriated over $2 million from token sales, spending the funds on personal luxuries including two Texas properties and luxury vehicles.

Connection to “Casino Jack” Abramoff

The case gained additional notoriety due to Andrade’s connection with infamous Washington D.C. lobbyist Jack Abramoff, who was named as a co-conspirator. Abramoff—previously imprisoned for corruption in a scandal significant enough to inspire the film “Casino Jack”—pleaded guilty in 2020 and paid over $50,000 in disgorgement and interest.

False Claims and Broken Promises

Among Andrade’s deceptive tactics was a fabricated claim that the Panama Canal Authority was on the verge of adopting AML Bitcoin for ships passing through the canal. Investigators confirmed no such agreement was ever in place.

“Fraudsters often tout new and innovative technology in order to raise money from investors. But raising money through lies and misrepresentations is neither new nor innovative. It’s unlawful, plain and simple,” said Acting United States Attorney Patrick D. Robbins. “If you deceive investors to enrich yourself and spend their money on personal expenses, homes, and property, you will be held to account.”

Sentencing and Potential Penalties

Andrade faces sentencing in July with serious consequences on the horizon. The wire fraud conviction carries a maximum penalty of 20 years in prison, while the money laundering count could add another 10 years. Additionally, he faces forfeiture of all property traceable to his fraudulent activities, including his Texas real estate purchases.

This verdict highlights the continued efforts of federal authorities to crack down on cryptocurrency scams as digital asset markets mature and regulatory oversight intensifies.