John McAfee accused of cryptocurrency fraud

John McAfee accused of cryptocurrency fraud

The US Department of Justice said: It has indicted John McAfee, a pioneer in anti-virus programs whose previous company still bears his name, accused of securities fraud over the pumping and dumping scheme. Cryptocurrency.

Authorities accused John McAfee, his executive advisor and bodyguard (Jimmy Gale Watson), of exploiting McAfee’s Twitter account to artificially inflate currency rates through a so-called “pump and dump” scheme, and hide payments that McAfee received from startups to promote initial coin offerings.

And thereveal Prosecutors for the case against McAfee and Watson Pretenders They have earned more than $ 13 million from these charts, including $ 2 million by urging Twitter followers to invest in cryptocurrencies, such as: Reddcoin and Dogecoin, and then sell what they own as the price rises.

“McAfee and Watson took advantage of the widely used social media platform and enthusiasm among investors in the emerging cryptocurrency market to make millions through lies and deceit,” US Attorney Audrey Strauss said.

She added: The defendant allegedly used McAfee’s Twitter account to post messages to hundreds of thousands of his followers through the platform in order to promote various cryptocurrencies through false and misleading data to hide the true motives.

McAfee and Watson allegedly ran their scheme from December 2017 to October 2018.

McAfee used his verified Twitter account, which currently has nearly a million followers, to recommend the currency of the day or the currency of the week.

The indictment says: McAfee claimed that he had no stake in these currencies, but he had previously bought large quantities with Bitcoin, and then sold them after the price had risen, which would reduce the currency’s price and cause losses to investors.

McAfee and Watson face seven charges, each of which ranges between 5 and 20 years in prison. Criminal charges include electronic fraud, conspiracy to commit fraud in goods and securities and conspiracy to commit money laundering.

McAfee – known for establishing the antivirus company that bears his name – was arrested last year on separate tax evasion charges.

The SEC filed a lawsuit against him in October for fraudulent promotion of initial coin offerings or ICOs.

Authorities said: McAfee presented himself as an expert in cybersecurity and cryptocurrencies through his tweets, speeches and his role as CEO of a publicly traded digital currency company.

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