The U.S. Department of Justice indicted the founder of “AML Bitcoin” on money laundering and wire fraud charges.
According to a court filing dated June 22, Texas resident Rowland Marcus Andrade, the founder of the NAC Foundation, allegedly raised funds by conducting an initial coin offering for tokens representing AML Bitcoin, telling investors that the tokens would ultimately be converted into actual AML Bitcoin.
“In [its] White Paper, the NAC Foundation claimed AML Bitcoin cryptocurrency would include features that would allow the cryptocurrency to comply with anti-money laundering and know-your-customer regulations and laws by using ‘biometric technologies’ among other methods to confirming the identities of participants in transactions using AML Bitcoin,” the filing said.
According to a 2018 press release, NAC Foundation claimed AML Bitcoin was “The world’s only patent-pending digital currency with anti-money laundering, know-your-customer, anti-terrorism and theft-resistant properties.”
The DOJ filing was first shared by George Washington University Deputy Director on the Program on Extremism Seamus Hughes.
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Andrade tried to raise up to $100 million during the ICO, which occurred in late 2017 and early 2018. According to the filing, Andrade and unnamed colleagues “Made public statements and statements to potential purchasers” which “Misrepresented the state of the development” of the project; created a fake “Rejection campaign”; made statements which indicated the NAC Foundation was close to working with government agencies; and “Misappropriated money obtained through the sale of AML Bitcoin.”
The Panama claims were “Overstated,” and while “Andrade was present at a roundtable discussion and had his photograph taken with the [California] official,” “AML Bitcoin was not discussed.”
Report by Coindesk