Bitcoin boss convicted of Anti-Money Laundering
Rowland Marcus Andrade, the leader of a firm that distributed Anti-Money Laundering Bitcoin tokens, has been found guilty of money laundering by a jury in San Francisco. Federal prosecutors reported that investors experienced losses exceeding $2 million due to Andrade’s AML Bitcoin scheme.
Interestingly, the conviction coincides with a downtrend in authentic Bitcoin’s value, which has decreased by 19% in the recent month. On February 13, Bitcoin was trading at over $96,000, but by Thursday morning, its value had dropped to $80,051.21.
Prosecutors revealed during the trial that Andrade, aged 47 and hailing from Texas, misled potential investors by providing false information about the technology, practicality, potential business partnerships, and launch date of AML Bitcoin. Andrade purported that his digital currency, equipped with “biometric technologies,” could effectively combat money laundering.
Among the misleading statements, Andrade inaccurately informed investors that the Panama Canal Authority was on the verge of authorizing the use of the coin for ships traversing the canal. Furthermore, in his LinkedIn profile, Andrade marketed AML Bitcoin as potentially the sole coin structured to comply with anti-money laundering, anti-terrorism, anti-terrorist financing, bank secrecy, know-your-customer, and anti-financial crimes laws in both the United States and internationally.
During the trial, prosecutors demonstrated that Andrade utilized over $2 million from coin sales for personal expenditures, including purchasing two properties in Texas and two luxury vehicles. The funds were laundered through various bank accounts before being used for these purchases.
Acting U.S. Attorney Patrick D. Robbins condemned Andrade’s actions, affirming that defrauding investors with false promises under the guise of innovative technology is illegal and unacceptable. Andrade’s defense attorney attempted to shift the blame to other company associates, claiming that Andrade was influenced by individuals such as lobbyist Jack Abramoff, who was involved in promoting AML Bitcoin.
Abramoff, known for his involvement in a 2005 Washington, D.C. lobbying scandal, pleaded guilty in 2020 to charges related to wire fraud and investor deception in connection with AML Bitcoin. Andrade is scheduled to be sentenced on July 22, facing potential penalties of up to 20 years for wire fraud, 10 years for money laundering, and the forfeiture of properties associated with his crimes.
