https://igaming.org/crypto/aml-bitcoin-founder-convicted-of-fraud-and-money-laundering/

Rowland AML Bitcoin creator Marcus Andrade was found guilty in a federal court in California of wire fraud and money laundering. He was convicted on March 12 by the U.S. District Court for the Northern District of California of misleading investors about his cryptocurrency scheme.

In 2020, the U.S. Securities and Exchange Commission (SEC) filed a civil case against Andrade and his firm, the NAC Foundation, and authorities first prosecuted him. The SEC case may now move forward after being put on hold while the criminal trial was ongoing.

Millions Raised, But No Cryptocurrency Launched

According to the prosecution, Andrade promoted AML Bitcoin as a state-of-the-art digital currency that complied with Know Your Customer (KYC) and anti-money laundering regulations. Between 2017 and 2018, he conducted an initial coin offering (ICO) to raise more than $2 million from investors. But the cryptocurrency never came to pass.

Andrade is accused of misusing investor monies rather than creating the promised platform. He used the funds for personal indulgences like real estate and pricey cars, according to trial testimony.

Federal investigators further revealed Andrade’s dishonest practices. According to the Justice Department, he falsely asserted that the Panama Canal Authority was considering using AML Bitcoin for financial operations. In fact, there was no such agreement.

Linda Nguyen, a special agent with the IRS Criminal Investigation unit, emphasized the impact of his scheme: “Andrade’s deception convinced people to invest their savings in a project that was built on false claims.”

Since his initial arrest in 2020, Andrade has remained out on bond. However, with his conviction, he now faces serious legal consequences. His sentencing is scheduled for July 22. He could receive up to 20 years in prison for wire fraud and an additional 10 years for money laundering.

This case marks another step in federal authorities’ efforts to crack down on cryptocurrency-related fraud.