The founder of a crypto token called Aml Bitcoin was sentenced to seven years in prison after being found guilty earlier this year of wire fraud and money laundering.
The US Ministry of Justice said on Tuesday that Rowland Marcus Andrade has frauds investors from $ 10 million and used $ 2 million from the sale of AML Bitcoin to finance its personal expenses, including purchase properties and luxury vehicles.
The prosecutors said that ARADE also deceived investors by making false complaints concerning AML Bitcoin technology and its affairs, one of which saw that the authority of the Panama canal would allow the token “to be used for ships passing through the Panama channel when no agreement of this type existed”.
The penalty comes below the government’s request to put Andrade behind bars for 17 and a half years. A California jury condemned Andrade in March for wire fraud and money laundering with regard to LMA Bitcoin.
“The accused made a false complaint after the other on a sophisticated cryptocurrency to create the illusion of a legitimate company,” said American prosecutor of San Francisco, Craig Missakian. “He has exploited many investors who trusted him, not knowing that their harshly won money was, in fact, financed his sumptuous lifestyle. Today, Andrade has learned the price of its greed. ”
Andrade to lose assets
Andrade will also have to force assets, which will be used to reimburse his victims. The court will determine the amount to lose for restitution on September 16.
Andrade’s seven years’ sentence will start on October 31. At the end of his prison sentence, he will be under the supervised release for the next three years, where he will have to respect the stipulations of the courts, such as registration regularly with the police.
AML Bitcoin attached to lobbyist Jack Abramoff
The political and criminal lobbyist condemned, Jack Abramoff, was ordered to pay $ 55,000 of respect to promote LMA Bitcoin in 2020. It was also permanent to participate in securities offers.
Abramoff has admitted fraud, tax evasion and conspiracy to bribe civil servants in a scandal involving Amerindian tribes wishing to develop a casino.
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In January 2021, a judge aroused legal action from the SEC until the Andrade criminal case was concluded, which suggests that the parties concerned can file a status hearing request within 30 days of resolution.
Prosecutors had asked for a longer sentence
The sentence of seven years’ imprisonment of Andrade is much shorter than the sentence of more than 17 years in prison than the prosecutors asked in a file of July 22.
However, the final conviction was much longer than the Andrade legal team wanted because they had asked for a two -year prison sentence followed by supervised release.
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