On Wednesday, a federal jury in Northern California convicted cryptocurrency entrepreneur Rowland Marcus Andrade of wire fraud and money laundering related to the token AML Bitcoin. The charges stemmed from a misleading initial coin offering he conducted in 2017 and 2018, where Andrade made false promises that the tokens would convert into a cryptocurrency that never launched.

Key Points:

• Andrade was found guilty of diverting over $2 million from AML Bitcoin sales for personal use, including purchasing properties and luxury vehicles.
• The conviction is one of the first and longest-running crypto pump-and-dump cases involving U.S. federal prosecutors.

Jack Abramoff, a notable D.C. lobbyist, has been named as a co-conspirator; he pleaded guilty in 2020 concerning this case.

In a statement, Patrick D. Robbins, Acting U.S. Attorney, emphasized the seriousness of Andrade’s actions stating, “If you deceive investors to enrich yourself and spend their money on personal expenses, homes, and property, you will be held to account.”

Andrade is awaiting sentencing in July and faces a maximum penalty of 20 years for wire fraud and 10 years for money laundering, with additional forfeitures expected.