Home Bitcoin News Bitcoin Scam John McAfee faces federal charges alleging crypto pump-and-dump scam on Twitter – MarketWatch

John McAfee faces federal charges alleging crypto pump-and-dump scam on Twitter – MarketWatch

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NEW YORK (AP) — Antivirus software program entrepreneur John McAfee was indicted on fraud and cash laundering conspiracy fees alleging that he and cohorts remodeled $13 million by fooling buyers zealous over the rising cryptocurrency market, authorities mentioned Friday.

McAfee, 75, was charged in a newly unsealed indictment in Manhattan federal court docket together with Jimmy Gale Watson Jr., who served as an government adviser on what prosecutors described as McAfee’s “so-called cryptocurrency staff.”

Prosecutors mentioned Watson, 40, was arrested Thursday night time in Texas and would make an preliminary look Friday earlier than a federal Justice of the Peace decide in Dallas. McAfee, authorities mentioned, is detained in Spain on separate prison fees filed by the U.S. Justice Division’s tax division.

It was not instantly clear who would signify the lads.

“McAfee and Watson exploited a extensively used social media platform and enthusiasm amongst buyers within the rising cryptocurrency market to make tens of millions by means of lies and deception,” U.S. Legal professional Audrey Strauss mentioned in a press release describing crimes in 2017 and 2018.

“The defendants allegedly used McAfee’s Twitter account to publish messages to a whole bunch of hundreds of his Twitter followers touting varied cryptocurrencies by means of false and deceptive statements to hide their true, self-interested motives,” she added.

In October, McAfee was charged in federal court docket in Memphis, Tennessee, with evading taxes after failing to report earnings produced from selling cryptocurrencies whereas he did consulting work, made talking engagements and offered the rights to his life story for a documentary.

McAfee developed early web safety software program and has been sought by authorities within the U.S. and Belize up to now.

The indictment out of Tennessee mentioned McAfee didn’t file tax returns from 2014 to 2018, regardless of receiving “appreciable earnings” from a number of sources.

In July 2019, McAfee was launched from detention within the Dominican Republic after he and 5 others had been suspected of touring on a yacht carrying high-caliber weapons, ammunition and military-style gear, officers on the Caribbean island mentioned on the time.

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