What’s the Story
Antivirus software mogul, John McAfee, and his executive adviser, Jimmy Gale Watson Jr. are facing charges for alleged cryptocurrency fraud and money laundering crimes which yielded profits of $13 million.
According to a press release issued announcing the indictment, both men were believed to be involved in a scalping scheme where they bought huge amounts of cheap cryptocurrency altcoins then aggressively advertised them on McAfee’s Twitter account, spreading misleading claims to artificially inflate their market prices.
If proven guilty, McAfee and Watson will be facing five to twenty years imprisonment and financial penalties.
Tech entrepreneur John McAfee charged with fraud, money laundering in cryptocurrency schemes
McAfee’s team made ‘millions through lies and deception’: South District of New York
Fox Business disclosed in a report that tech entrepreneur John McAfee and his cryptocurrency team were charged with fraud and money laundering conspiracy crimes related to two schemes that netted them $13 million by the Southern District of New York.
McAfee, 75, and his executive adviser, Jimmy Gale Watson Jr., 40, are accused of crimes including conspiracy to commit commodities and securities fraud, conspiracy to commit securities and touting fraud, conspiracy to commit wire fraud, substantive wire fraud and conspiracy to commit money laundering for their alleged roles in two schemes relating to the fraudulent promotion to investors of cryptocurrencies.
The charges carry maximum prison sentences ranging from five to 20 years and also include the potential for financial penalties.
Antivirus software creator John McAfee indicted on cryptocurrency fraud charges
McAfee and his “cryptocurrency team” advisor Jimmy Watson allegedly engaged in an “age-old pump-and-dump scheme”
According to CNBC, Federal prosecutors on Friday accused antivirus software company founder John McAfee and his associate of orchestrating fraudulent schemes to rake in millions of dollars from cryptocurrency investors.
McAfee and his “cryptocurrency team” advisor Jimmy Watson allegedly engaged in an “age-old pump-and-dump scheme,” FBI Assistant Director William F. Sweeney Jr. said in a press release.
In the “scalping” scheme, McAfee and his team allegedly bought large amounts of cheap cryptocurrency altcoins, then aggressively promoted them online with “false and misleading endorsement tweets” to artificially inflate their market prices..