The founder of a cryptocurrency exchange associated with Anti-Money Laundering (AML) efforts has been convicted of wire fraud and money laundering by a California jury.
During a trial on March 12, in the US District Court for the Northern District of California, Rowland Marcus Andrade, the creator of AML Bitcoin, was found guilty on two felony counts linked to a scheme that deceived investors. Criminal charges were initially brought against Andrade in June 2020, coinciding with a civil lawsuit filed by the US Securities and Exchange Commission (SEC) against him and the NAC Foundation, which he founded and led.
“Mr. Andrade’s outrageous lies lured unsuspecting investors into pouring their hard-earned money into a cryptocurrency with fictitious attributes,” stated a spokesperson from the IRS’s Criminal Investigation Oakland Field Office. “However, this scheme was far from sophisticated. Rowland Marcus Andrade swindled money from unsuspecting individuals and used it to build his personal wealth.”
Jury verdict for Rowland Marcus Andrade on March 12.
The SEC’s civil case against Andrade gained attention due to the involvement of political lobbyist Jack Abramoff, who spent four years in prison between 2006 and 2010 after being convicted of mail fraud, conspiracy to bribe public officials, and tax evasion. In January 2021, a judge agreed to pause the SEC lawsuit pending the outcome of Andrade’s criminal case, indicating that the civil proceedings could resume soon.
The June 2020 indictment alleged that the NAC Foundation falsely claimed that a cryptocurrency associated with AML Bitcoin was in the works—however, it never materialized—and that it would comply with money laundering and Know Your Customer (KYC) regulations. Andrade promoted these claims during an initial coin offering between 2017 and 2018. Evidence presented during his trial indicated that he misappropriated over $2 million from platform sales, using it for real estate and luxury vehicles.
“Andrade made numerous false statements, including claims that the Panama Canal Authority was on the brink of approving AML Bitcoin for use by ships traversing the canal when no such agreement was in place,” said the Justice Department.
Andrade is set to appear in court again for sentencing on July 22. Since 2020, he has been free on a $75,000 bond, subject to certain travel limitations. He could face up to 20 years in prison for the wire fraud conviction and 10 years for money laundering.
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