IRS Slams ‘Bitcoin Creator’ With 7 Years in Prison for Investor Fraud
The self-proclaimed Bitcoin Creator is headed to prison.
Rowland Andrade, the founder and CEO of the now-defunct AML Bitcoin project, has been sentenced to seven years in federal prison after being convicted of defrauding investors out of over $5 million, according to a July 30 statement from the U.S. Department of Justice.
Andrade gained notoriety by branding himself as a regulatory-friendly alternative to Bitcoin, positioning AML Bitcoin as a blockchain with built-in compliance features such as Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. The project’s marketing appealed to investors hoping to avoid regulatory scrutiny—especially during the height of the ICO boom.
However, federal investigators revealed that these features never existed.
DOJ: “Fraud Disguised as Innovation”
According to court documents, Andrade misled investors by falsely claiming that AML Bitcoin was being developed in partnership with U.S. government agencies, including the Department of Homeland Security. The DOJ stated that not only were these claims completely fabricated, but investor funds were also funneled into personal expenses, including luxury purchases, designer clothing, and first-class travel.
The Internal Revenue Service’s Criminal Investigation Division (IRS-CI), which led the financial forensics, emphasized the scale of deception. In a separate statement, the IRS-CI said Andrade “used the Bitcoin Creator narrative to hide his fraudulent schemes behind the veneer of innovation.”
No Blockchain, No Tech—Just Smoke and Mirrors
Despite claiming to be the next step in Bitcoin’s evolution, AML Bitcoin never launched a working blockchain. Instead, prosecutors found that investors received worthless tokens with no utility or real backing.
The project’s website, whitepaper, and pitch decks were also cited in the trial as tools of manipulation, used to falsely inflate the value and legitimacy of the project. In reality, Andrade operated without a tech team, development progress, or credible infrastructure.
Final Thoughts: Fallout From the “Bitcoin Creator” Myth
This case marks a significant moment in the fight against crypto fraud. The Bitcoin Creator title, once used as a badge of innovation, has now become a cautionary tale.
As the crypto industry matures, regulatory bodies are tightening their grip—and stories like Andrade’s only reinforce the need for transparency, working products, and real compliance.Investors are once again reminded: a strong narrative isn’t a substitute for real tech.
