The United States Department of Justice (DOJ) has accused the founder of "AML Bitcoin" of money laundering and cable fraud. The U.S. Securities and Exchange Commission (SEC) also filed a complaint, alleging that the AML Bitcoin team violated federal securities laws.
The AML Bitcoin token scam
According to a judicial filing of June 22, Rowland Marcus Andrade, founder of the NAC Foundation and resident in Texas, allegedly raised funds by conducting an initial coin offering for AML Bitcoin tokens, i.e. telling investors that the tokens would eventually be converted into AML Bitcoin ( which is not a cryptocurrency and cannot be exchanged for software like Bitcoin Pro).
The SEC and DOJ also accused historian DC lobbyist Jack Abramoff of conspiracy, as he lobbied to encourage disclosure and implementation of deceptive practices. According to Bloomberg, Abramoff will plead guilty and pay more than $ 50.000 in penalties and interest.
"In [its] white paper, the NAC Foundation said that the AML Bitcoin cryptocurrency includes features that allow it to comply with anti-money-loundering (also known as" AML ") and know-your-customer (KYC) rules. thanks to "biometric technologies", among others, which would confirm the identities of the participants in AML Bitcoin transactions ", reports the DOJ complaint.
According to a 2018 press release, the NAC Foundation said that AML Bitcoin was "the only patent-pending digital currency in the world with anti-money laundering, know-your-customer, anti-terrorism and anti-theft properties."
Andrade sought to raise up to $ 100 million during an ICO between late 2017 and early 2018, the report says. Specifically, Andrade is reported to have raised approximately $ 5,6 million from 2.400 investors.
Misleading or false statements by project managers
According to the DOJ filing, Andrade and other colleagues "made public or private statements to potential buyers" who "misrepresented the state of development" of the project. A fake advertising campaign focused on the National Football League has been created.
In particular, "Andrade, the NAC Foundation and its associates said that the advertisement would be broadcast during the Super Bowl if the television network broadcasting the Super Bowl and the National Football League had not rejected the advertisement as being too controversial," reports the complaint.
Advertising never aired and "In fact, the NAC Foundation did not have the funds to buy advertising time and advertising was never evaluated or rejected by the network or the NFL."
According to the DOJ, Andrade also claimed to participate in meetings with the Panama government and an elected official in California. The report claims that the claims about Panama are "overstated", and although "Andrade was present at a round table with a [California] official and photos were also taken", AML Bitcoin "was not discussed".
The text of the complaint also states that nearly $ 1 million was spent on a new home and various properties. The trial is still ongoing, according to court documents.
