Abramoff admits guilt in bitcoin fraud case

Published Jun 29, 2020
[2 mins read]
‘Casino Jack’ Abramoff has pleaded guilty in the case implicating him on charges of running a Ponzi-scheme that duped investors of $5 million, promising to develop a new, safer version of the Bitcoin.
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Abramoff, or ‘Casino Jack, was played by Kevin Spacey in 21, and has been a controversial figure from the start. He served three years in prison for participating in a Native American casino lobbying scandal, but it’s because of the AML Bitcoin fraud he participated in that he is now facing another prison stint.

Abramoff was the CEO and founder of the NAC Foundation, an intiative dedicated to the development of the AML Bitcoin, a made-up currency that was never meant to see the light of day. In raising funding for the company, Abramoff made a series of misleading and outright fraudulent claims, arguing that NAC would be able to create a variation of bitcoin that uses biometric data to completely ward any attempts for fraud.

He also promised investors that he would air a commercial during the 2018 Super Bowl game, hoping to establish credibility with potential investors. It has succeeded as his company soon raised $5 million, but he nor his accomplice had no intention of realising AML Bitcoin.

Abramoff further lied about having had a heart-to-heart with government agencies and ensuring investors that his company’s currency would be actionable and have real, steady value.

According to prosecutors, Abramoff managed, together with his accomplice, Rowland Marcus Andrade, to launder $1 million of AML Bitcoin investment money.

The prosecution claimed that the defendants had repeatedly misled over 2,400 investors. The admission of guilty will offer Abramoff some leeway in appealing for a lighter sentence, but in light of his previous misconduct, his optimism should be stifled.

Meanwhile, the world of cryptocurrencies remains full of pitfalls. Yet, some companies have been able to establish a footprint and operate as legitimate entities. For example, Bitcasino.io is a Bitcoin-focused casino, supporting multiple currencies, and operating legitimately for half a decade now. Likewise, other branches of bitcoin have led to successful operations, notably Bitcoin SV.

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CGN senior journalist 

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