AML Bitcoin founder lands jail term for $10M crypto fraud after FBI, IRS investigation

Rowland Marcus Andrade, the founder of AML Bitcoin, will serve a jail term of 84 months for wire fraud and money laundering. The sentence is linked to a $10 million crypto scam. However, the sentencing follows a five-week trial that concluded in March 2025.

According to US prosecutors,  Andrade misrepresented AML Bitcoin’s capabilities and promoted fake deals. This includes a completely fabricated claim that the Panama Canal Authority would adopt the token for shipping payments. Meanwhile, no such deal existed, and investors were led to believe they were backing a sophisticated anti-money-laundering crypto innovation.

AML Bitcoin founder misled investors

In the name of developing tech, Andrade funneled more than $2 million of investor funds into luxury personal expenses. This involves buying two Texas properties and high-end cars while laundering the money through a network of bank accounts.

In addition to prison, Andrade faces three years of supervised release. However, a court hearing in September will determine the final forfeiture and restitution amounts. He is scheduled to begin serving his sentence on October 31, 2025.

The case was investigated by the FBI and IRS. The prosecution was led by the US Attorney’s Office for the Northern District of California and the Department of Justice’s Criminal Division.

US Attorney Craig Missakian, while condemning the scheme, mentioned that the defendant made one false claim after another to create the illusion of a legitimate business. 

FBI Special Agent in Charge Sanjay Virmani highlighted that Andrade promised innovation but delivered deception. He added that the agency is committed to protecting the public from financial fraud and ensuring justice.

FBI seizes $2.4M in Bitcoin

Recently, the FBI made a clean sweep by seizing over 20 Bitcoins (worth $2.4 million) linked to a ransomware affiliate called “Hors”. This is believed to be part of the Chaos gang, a group with cyber fingerprints all over Texas. The digital bounty was traced to ransomware extortion attacks on companies across the Northern District of Texas. 

Today, FBI Dallas made public the seizure of over $1.7 million worth of cryptocurrency as part of ongoing efforts to combat ransomware. The seized funds were traced to a cryptocurrency address allegedly associated with a member of the Chaos ransomware group, known as "Hors," who… pic.twitter.com/uWeIMMGE9J

— FBI Dallas (@FBIDallas) July 28, 2025

According to the FBI in Dallas, they made public the seizure of over $1.7 million worth of cryptos as part of efforts to combat ransomware. This Chaos gang is not an ordinary script kiddie outfit, and it reportedly turns out to be a reincarnation of BlackSuit. The crypto was seized back in April, but the DOJ just filed a civil forfeiture complaint claiming permanent ownership of the money.

As watchdogs keep on taking over the crime, the digital assets industry enters into a correction period after witnessing long bull rallies. The cumulative crypto market cap turned red but marginally to stand at $3.87 trillion. Bitcoin price is still up by 10% over the last 30 days. BTC is trading at an average price of $118,037 at the press time.

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