Published on: November 20, 2025, 02:04h.
Updated on: November 20, 2025, 02:38h.
- Jack Abramoff sentenced to probation instead of prison for AML Bitcoin fraud
- Prosecutors revealed false technology claims and fabricated stories of government interest
- Case draws parallels to previous lobbying scandals involving Native American tribes
Known as “Casino” Jack, Abramoff is a well-remembered Republican lobbyist who previously served four years in prison for taking advantage of Native American tribes’ gaming interests. This time, he faced consequences for his involvement in crypto fraud but avoided imprisonment.
The 67-year-old fraudster received a three-year federal probation sentence for his role in the $5.6 million AML Bitcoin pump-and-dump cryptocurrency operation, as revealed in court documents.
During the sentencing at the US District Court in Northern California, Judge Richard Seeborg cited Abramoff’s serious cancer diagnosis when granting clemency, stating that there was “minimal chance of reoffending.” He was also ordered to repay $2.2 million to the victims involved in the scheme.
AML Bitcoin Pump-and-Dump Scheme
Abramoff pleaded guilty in 2020 to wire fraud associated with his activities for AML Bitcoin and its founder, Rowland Marcus Andrade.
The duo misled investors by promoting the cryptocurrency as technologically superior to Bitcoin, claiming multiple government agencies were discussing its adoption, according to court documents.
Among the fraudulent assertions was that AML Bitcoin featured advanced anti-money laundering and anti-terrorism technologies within its “privately regulated public blockchain,” which, in reality, did not exist, as reported by prosecutors.
Additionally, they falsely claimed that the Panama Canal Authority was on the verge of allowing the cryptocurrency for transit for vessels using the canal, despite no such agreement being in place.
They further misrepresented to potential investors that a Super Bowl advertisement they had created was rejected due to being “too political,” when in fact, they lacked the funds to finance it.
These misleading promotions inflated the token’s trading volume and price, allowing Andrade to siphon off over $2 million in profits at its peak.
Andrade was sentenced to seven years in prison in July 2025 for wire fraud and money laundering.
Betrayal of Tribal Communities
Abramoff’s conviction marked him as the first individual to be convicted of violating the amended Lobbying Disclosure Act, significantly revised in 2007 following his own unethical dealings.
In the early 2000s, Abramoff was a prominent lobbyist connected to several Native American tribes pursuing rights to operate gaming casinos, including the Mississippi Band of Choctaw Indians, the Coushatta Tribe of Louisiana, and the Ysleta del Sur Pueblo.
A federal investigation discovered that he and his associates significantly overcharged these tribes for their services while covertly lobbying against certain tribal clients. This created political challenges for the tribes, which they then claimed to solve.
Additionally, he was involved in the fraudulent acquisition of a fleet of casino cruise ships, known as SunCruz. Abramoff used a fabricated wire transfer to mislead lenders into believing that he and his partner, Adam Kidan, had made a $23 million down payment to secure a $60 million loan.
Abramoff pleaded guilty in 2006 to charges of fraud, conspiracy, and tax evasion, receiving a six-year prison sentence.
He served 43 months before his release in 2010. His criminal exploits inspired the film “Casino Jack,” featuring Kevin Spacey.