John McAfee, The Software Mogul Charged With Cryptocurrency Fraud
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John McAfee, The Software Mogul Charged With Cryptocurrency Fraud

March 6, 2021      Deepshikha Gupta

The software mogul, John McAfee is charged with cryptocurrency fraud like securities scams, and money laundering along with the Executive Advisor of McAfee’s, Jimmy Gale Watson, who was also arrested on 4th March 2021, in Texas. 

As alleged, McAfee and Watson exploited social media platforms and enthusiasm among investors in the emerging cryptocurrency market to make millions through lies and deception. 

The Software Mogul John McAfee’s Cryptocurrency Fraud

The Press Release states that there are two fraudulent schemes to tout cryptocurrencies, the crypto baron came up with. The first one consists of promoting initial coin offerings in exchange for “secret compensations” while another one of them involves pumping and dumping tokens taking the help of false advertisements on the social media platforms like Twitter.

Prosecutor says McAfee and his team used social media due to million followers to promote Initial Coin Offerings ICOs, without disclosing his profit of being paid by ICO users to do so. 

Moreover, in several instances during the ICO touting scheme, McAfee and Watson took active steps to conceal their secret compensation arrangement with ICO users as well as investors. The false and misleading statements hide such deals from ICO investors. 

Manhattan U.S. Attorney Audrey Strauss said “as alleged, McAfee and Watson exploited a widely used social media platform and enthusiasm among investors in the emerging cryptocurrency market to make millions through lies and deception.” 

Key Background of John McAfee

After selling the shares to the software giant in 1990, McAfee had various run-ins with the law. In the 2008 recession, he was named a person of interest in the murder, which he denied any involvement in. 

Last year, he admitted to not paying taxes on video. In his short-lived presidential campaign as Libertarian, McAfee sold cryptocurrencies as a way to prevent the government from collecting income taxes. He was then finally arrested on tax evasion charges in Spain. And faced separate civil charges from SEC for fraudulently touting ICOs.

 

READ  SEC Charges U.S. Businessman For A Crypto Fraud Scheme
#Cryptocurrency fraud #Initial Coin Offering (ICO) #John McAfee
Deepshikha Gupta
Deepshikha Gupta

A student from a technical background, Deepshikha found Bitcoin in 2020 and has been an evangelist ever since. A B.Tech turned into a full-time crypto-writer, she tries to bridge the gap that currently exists between the crypto world and people from non-technical backgrounds, through her simplistic yet effective form of writing. She finds that her writing for cryptocurrencies can redefine the way the audience interacts with the crypto space.