Nikolas Sargeant
Rowland Marcus Andrade, founder and CEO of NAC Foundation, has been sentenced to seven years in federal prison for orchestrating a sophisticated cryptocurrency fraud scheme involving AML Bitcoin. The US Department of Justice determined that Andrade systematically misled investors between 2014 and 2019, ultimately raising nearly $10 million through deliberate misrepresentations about the project's capabilities and business prospects.
US Attorney Craig H. Missakian emphasized the calculated nature of the deception, stating, "The defendant made one false claim after another about a sophisticated cryptocurrency offering to create the illusion of a legitimate business." The case highlights ongoing federal efforts to prosecute cryptocurrency-related fraud as digital asset investments continue attracting mainstream attention.
Andrade's sentencing includes a prison term beginning October 31, 2025, followed by three years of supervised release. Chief Judge Richard Seeborg also ordered the forfeiture of all ill-gotten gains, with specific amounts to be determined during a September 16, 2025 restitution hearing.
Fabricated Partnerships and Lavish Personal Spending
Federal prosecutors revealed extensive details about Andrade's fraudulent tactics, including fabricated claims of a partnership with the Panama Canal Authority designed to enhance AML Bitcoin's perceived legitimacy. These false representations formed a cornerstone of his investor pitch strategy, convincing victims to invest substantial sums based on nonexistent business relationships.
Investigation findings demonstrated that Andrade laundered and personally spent over $2 million of investor funds on luxury purchases, including Texas real estate and two high-end vehicles. US Attorney Missakian noted, "He exploited numerous investors who put their trust in him, not knowing that their hard-earned money was in fact funding his lavish lifestyle."
FBI Special Agent in Charge Sanjay Virmani characterized the case as representing broader law enforcement priorities, stating, "Rowland Marcus Andrade promised innovation but delivered deception," while reaffirming the agency's commitment to pursuing financial fraud cases in the cryptocurrency sector.
The September restitution hearing will determine precise victim compensation amounts, though authorities have indicated their intention to recover as much stolen capital as possible for distribution to affected investors.
Cryptocurrency Security Landscape Shows $2.2B in H1 2025 Losses
Andrade's conviction occurs amid broader cryptocurrency security challenges, with CertiK's latest report documenting over $2.2 billion in investor losses during the first half of 2025. These losses stemmed primarily from wallet compromises, phishing attacks, and protocol exploits affecting various blockchain networks.
Wallet breaches represented the most significant threat category, causing $1.7 billion in losses across just 34 incidents. Phishing scams contributed an additional $410 million in damages across 132 separate attacks, demonstrating the continued effectiveness of social engineering tactics against cryptocurrency users.
Two major incidents heavily influenced 2025's loss statistics: Bybit's $1.5 billion February hack and Cetus Protocol's $225 million May exploit combined to account for nearly $1.78 billion in total losses. Excluding these outlier events, cryptocurrency losses align more closely with historical patterns at approximately $690 million.
Ethereum networks suffered the heaviest impact, experiencing over $1.6 billion in losses across 175 separate security incidents. CertiK's analysis emphasizes rising sophistication in phishing schemes and persistent social engineering risks, recommending hardware wallet usage, link verification, and avoidance of suspicious websites as primary protective measures.
