$2 Million Crypto Fraud: AML Bitcoin Creator Guilty of Wire Fraud

A jury in the US District Court for the Northern District of California reached the verdict on March 12, convicting him of two felony charges related to misleading investors.

Andrade promoted AML Bitcoin as a cryptocurrency that would comply with the Anti-Money Laundering (AML) and Know Your Customer (KYC) rules. However, the token never launched.

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Between 2017 and 2018, investors contributed more than $2 million through an initial coin offering (ICO). Instead of using the funds for the project, Andrade spent the money on real estate and luxury vehicles.

Prosecutors argued that Andrade deceived investors with false claims, including one that the Panama Canal Authority was close to approving AML Bitcoin for use in ship transactions. The US Department of Justice pointed to this as one of several misleading statements used to encourage investment.

Andrade has remained out on a $75,000 bond since 2020 but faces serious penalties at his upcoming sentencing hearing on July 22. He could receive up to 20 years in prison for wire fraud and up to 10 years for money laundering.

Linda Nguyen, Special Agent in Charge at the IRS Criminal Investigation Oakland Field Office, criticized Andrade’s actions, saying:

Mr. Andrade’s outrageous lies lured and scammed individuals into investing their hard-earned money into a new cryptocurrency with fabricated features.

On February 26, US authorities took Aleksei Andriunin, the founder of Gotbit, a crypto "market maker" company, into custody. What happened? Read the full story.