Rowland Marcus Andrade, the man who launched a cryptocurrency called AML Bitcoin, has been sentenced to seven years in prison for misleading investors and misusing funds.
A jury in California found him guilty of wire fraud and money laundering in March.
According to a July 29 press release by the US Department of Justice, Andrade collected around $10 million by promoting his digital token using false claims.
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He told investors that AML Bitcoin had advanced security features and was backed by major business deals. One of those claims was that ships would be able to pay with the token to pass through the Panama Canal.
Out of the total money raised, about $2 million was spent on Andrade’s personal expenses, including homes and expensive cars. Authorities said this was part of a plan to make his project appear more successful than it actually was.
Prosecutors had asked for a longer sentence of 17 and a half years, but the court decided on a shorter prison term. US Attorney Craig Missakian said:
He exploited numerous investors who put their trust in him, not knowing that their hard-earned money was, in fact, funding his lavish lifestyle.
The prison sentence begins on October 31. Additionally, Andrade must give up certain assets. These will later be used to help pay back those who lost money. A court hearing on September 16 will decide how much will be returned.
Andrade will remain under government supervision for three years after serving his prison sentence.
Recently, Christina Marie Chapman, a freelancer from Arizona with over 100,000 TikTok followers, has been sentenced to eight and a half years in prison. What happened? Read the full story.
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