The Attorney’s Office for the Southern District of New York has filed charges against entrepreneur John McAfee of fraud and conspiracy to launder money.
The prosecutor’s office also has complaints against the executive advisor of the antivirus company McAfee Jimmy Gale Watson Jr. (Jimmy Gale Watson Jr.). According to the prosecution, he was involved in a conspiracy to commit fraud with digital assets using electronic means. Watson was recently arrested in Texas and will soon appear on trial in the North Texas District. McAfee is in custody in Spain. In the fall, he was arrested in connection with tax evasion charges brought against the US Department of Justice.
Manhattan Attorney Audrey Strauss said McAfee and Watson used social media to attract investors by spreading false information that misleads investors. According to Strauss, “McAfee and Watson hid their true motives, thanks to which they were able to make millions.” The prosecution claims that McAfee, Watson and other members of the McAfee team managed to raise more than $ 13 million through fraudulent schemes.
Deputy Chief Executive Officer of the FBI’s New York office, William F. Sweeney Jr., claims McAfee and Watson used their Twitter accounts to organize “pump and dump” schemes. As a result of such market manipulations, the defendants received a financial benefit of about $ 2 million. In addition, they advertised various cryptocurrencies without disclosing information about receiving monetary rewards from issuers of digital assets. These offenses were committed between December 2017 and October 2018. Prosecutors added that investment fraud and money laundering are in violation of federal laws and carry severe penalties.
McAfee previously stated that cryptocurrency firms are not obligated to prevent the use of cryptocurrencies for criminal purposes, as people “run away” to the cryptocurrency market from a corrupt government. However, not all digital asset firms share this view.