A former navy seal and bodyguard to the banged-up overseas McAfee antivirus software program founder, John McAfee, has pleaded not guilty to costs alleging he was concerned in two wholesale crypto scams that duped buyers out of roughly $13 million.
Jimmy Gale Watson Jr, the previous govt advisor of the “McAfee Team” — an internet site providing crypto ideas endorsed by John McAfee, was arrested in Texas on March 4. Watson faces costs of allegedly defrauding buyers via cryptocurrency scams, cash laundering, wire fraud, and conspiracy to commit commodities and securities fraud.
In a March 5 indictment, Manhattan U.S. Attorney Audrey Strauss asserted:
“McAfee, Watson, and other members of McAfee’s cryptocurrency team allegedly raked in more than $13 million from investors they victimized with their fraudulent schemes.”
John McAfee is at present in jail in Spain, the place he was arrested for tax evasion in October 2020. The U.S. authorities is at present looking for McAfee’s extradition so he can face a litany of charges together with failing to submit tax returns for 2014 to 2018 whereas incomes millions from “promoting cryptocurrencies, consulting work, speaking engagements, and selling the rights to his life story for a documentary.”
Watson is accused of being concerned in a sequence of altcoin “pump and dump” schemes throughout 2017 and early 2018. The indictment claims The McAfee Team bought massive sums of altcoins at low value factors earlier than endorsing them publicly to McAfee’s a whole lot of 1000’s of Twitter with deceptive info.
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Once retail buyers had pushed costs up in response to McAfee’s tweets, the group would then secretively dump the cash.
The pair are additionally accused of publicly touting preliminary coin choices through McAfee’s Twitter account whereas “concealing that the ICO issuers were compensating McAfee and his team for his promotional tweets with a substantial portion of the funds raised from ICO investors.”