The U.S. Department of Justice has intensified its legal efforts in the cryptocurrency space, imposing severe sanctions on several key figures involved in digital currency projects linked to financial misconduct. In a recent development, Rowland Marcus Andrade, the founder of AML Bitcoin, was sentenced to seven years in federal prison for defrauding investors and laundering money. Andrade, who misled investors with false claims about the project’s partnerships and technological capabilities, is reported to have raised approximately $10 million from individuals who trusted the project’s purported regulatory compliance and security measures [1].
Court records show that Andrade falsely claimed the AML Bitcoin platform was recognized as a payment method by the Panama Canal Authority, a claim that was later proven to be untrue. Despite assurances of advanced technology and robust security, the infrastructure did not meet the promised standards. Andrade also used at least $2 million of the funds for personal expenses, including the purchase of real estate and luxury vehicles, violating the trust of investors and neglecting the transparency he had promised [1].
The sentence, though shorter than the seven-year maximum requested by prosecutors, is significantly harsher than the defense’s proposed two-year probation. Andrade’s incarceration is set to begin on October 31, 2025, with a separate court session scheduled for September 16, 2025, to address victim compensation and asset seizure [1]. The DOJ’s action in the AML Bitcoin case underscores the agency’s commitment to holding crypto project leaders accountable for misleading statements and misuse of funds.
These enforcement actions are part of a broader regulatory push against privacy-centric crypto tools. In a separate but related case, the co-founders of the privacy-focused crypto mixer Samourai Wallet, William Lonergan Hill and Keonne Rodriguez, pleaded guilty to operating an unlicensed money transmitter. The plea deal avoids the more severe money laundering charge, which could have resulted in a 20-year prison sentence, reducing the maximum penalty to five years [1]. The DOJ and FBI shut down the platform in 2024 after it was alleged to have facilitated over $100 million in illicit fund transfers, raising concerns about its role in money laundering and sanctions evasion.
The Samourai Wallet case has sparked a legal debate over the interpretation of federal money transmission laws, with privacy advocates arguing that developers should not be held responsible for how users apply their tools. Amanda Tuminelli, chief legal counsel for the DeFi Education Fund, criticized the DOJ’s stance, emphasizing that overreach could undermine legitimate on-chain transaction needs [1]. The November 6, 2025, sentencing hearing will be closely watched by the crypto community and legal experts as a potential precedent for future cases involving privacy-focused applications.
The regulatory scrutiny extends beyond mixer services. The Justice Department has also charged the founder of the cryptocurrency company Evita with 22 violations for allegedly laundering over $500 million [2]. In another case, U.S. authorities seized more than $10 million in crypto assets linked to the Sinaloa drug cartel, signaling a broader strategy to combat criminal financing through digital assets [4].
These actions reflect a growing legal and political sensitivity toward the need for transparency and accountability in the crypto market. The AML Bitcoin case, in particular, illustrates how critical it is for investors to scrutinize the technical and legal frameworks of crypto projects before investing. As regulatory pressure continues to mount, the industry faces a critical juncture in defining the boundaries between privacy, innovation, and compliance.
Source:
[1] [Samourai Wallet Founders Plead Guilty to Unlicensed Money Transmitter Charges Amid Legal Debate](https://en.coinotag.com/samourai-wallet-founders-plead-guilty-to-unlicensed-money-transmitter-charges-amid-legal-debate/)
[2] [Regulatory Enforcement](https://www.complianceweek.com/topics/regulatory-enforcement)
[4] [US Seizes $10 Million in Crypto Tied to Sinaloa Cartel …](https://www.mitrade.com/au/insights/news/live-news/article-3-963838-20250716)
