Rowland Marcus Andrade, the founder of the now-discredited AML Bitcoin project, has been sentenced to seven years in prison for wire fraud and money laundering. The U.S. Department of Justice announced that Andrade misled investors and pocketed $10 million, spending $2 million of it on luxury items and real estate.

Authorities revealed Andrade built a web of lies around AML Bitcoin, claiming the token offered advanced anti-money laundering features and had government-level partnerships. One of the most outrageous claims was that the Panama Canal Authority agreed to use AML Bitcoin for ship transits—an entirely fabricated story with no basis in reality.

Andrade was convicted in March by a California jury. Prosecutors pushed for a 17.5-year sentence, but the court ultimately imposed a seven-year term. Andrade is also required to forfeit assets, which will go toward reimbursing defrauded investors. The exact restitution amount will be determined during a court hearing on September 16. He is set to begin serving his sentence on October 31, followed by three years of supervised release.

The scandal also touched high-profile lobbyist Jack Abramoff, who in 2020 was fined $55,000 and permanently banned from promoting securities after helping push AML Bitcoin. Abramoff previously pleaded guilty to separate charges of fraud and corruption.

The case triggered a stay on an SEC lawsuit against Andrade in 2021. With the criminal trial now concluded, related legal actions are expected to resume shortly.

Andrade’s legal team had sought just two years in prison, but the court handed down a significantly harsher penalty, underscoring the serious consequences of crypto fraud and investor deception.