Rowland Marcus Andrade, founder and CEO of NAC Foundation, has been sentenced to seven years in federal prison for wire fraud and money laundering linked to the cryptocurrency project AML Bitcoin.
Key Takeaways:
- AML Bitcoin founder Rowland Marcus Andrade received a seven-year prison sentence for wire fraud.
- Andrade misled investors with false claims, including a fake Panama Canal partnership.
- A hearing in September will determine how much restitution Andrade must pay to victims.
The US Department of Justice found that Andrade and his company misled investors between 2014 and 2019, raising nearly $10 million through false promises about the coin’s capabilities, launch timeline, and business prospects.
“The defendant made one false claim after another about a sophisticated cryptocurrency offering to create the illusion of a legitimate business,” US Attorney Craig H. Missakian said.
Prosecutors: Andrade Faked Panama Canal Deal to Boost AML Bitcoin
Prosecutors detailed how Andrade fabricated claims, including an alleged partnership with the Panama Canal Authority, to convince investors of AML Bitcoin’s legitimacy.
“He exploited numerous investors who put their trust in him, not knowing that their hard-earned money was in fact funding his lavish lifestyle,” Missakian said.
Investigators revealed that Andrade laundered and spent more than $2 million of investor funds on personal expenses, such as real estate in Texas and two luxury vehicles.
His prison sentence, which begins October 31, 2025, will be followed by three years of supervised release.
As a result of an FBI San Francisco investigation with IRS-CI, cryptocurrency founder and CEO Rowland Marcus Andrade was sentenced today to 7 years in prison for a multi-million-dollar fraud scheme. Andrade founded a cryptocurrency called AML Bitcoin. pic.twitter.com/DEjNRqUWSw
— FBI SanFrancisco (@FBISanFrancisco) July 29, 2025
Authorities have set a restitution and forfeiture hearing for September 16, 2025, to determine how much Andrade must pay back to his victims.
“Rowland Marcus Andrade promised innovation but delivered deception,” said FBI Special Agent in Charge Sanjay Virmani, highlighting the agency’s commitment to pursuing financial fraud.
Chief Judge Richard Seeborg’s sentencing also includes an order for Andrade to forfeit any ill-gotten gains, pending the outcome of the September hearing.
Crypto Hacks, Scams Cost Investors $2.2B in H1 2025: CertiK
Crypto investors lost over $2.2 billion to hacks, scams, and breaches in the first half of 2025, driven largely by wallet compromises and phishing attacks, according to CertiK’s latest security report.
Wallet breaches alone caused $1.7 billion in losses across just 34 incidents, while phishing scams accounted for over $410 million across 132 attacks.
Two major incidents, including Bybit’s $1.5 billion hack in February and Cetus Protocol’s $225 million exploit in May, skewed the year’s losses upward, together accounting for nearly $1.78 billion.
Without these, losses align more closely with previous years at around $690 million.
Ethereum remained the primary target, suffering over $1.6 billion in losses across 175 events.
The report also pointed to rising sophistication of phishing schemes and ongoing risks from social engineering, urging crypto users to verify links, avoid suspicious sites, and use hardware wallets.
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