Software Icon, McAfee, Charged In Cryptocurrency Scam

The creator of McAfee computer security software was facing
charges Friday that he cashed in on a “pump-and-dump” scheme, by
promoting cryptocurrencies on Twitter to drive up their value.

John McAfee, founder of the antivirus firm that bears his name,
and Jimmy Watson face charges of conspiracy, fraud, and money
laundering in connection with schemes to trick cryptocurrency
investors, according to an indictment unsealed by the US Department
of Justice.

“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,” US attorney
Audrey Strauss said in a release.

McAfee, Watson, and other members of their “cryptocurrency team”
allegedly “raked in more than $13 million from investors they
victimized with their fraudulent schemes,” according to
Strauss.

Pump-and-dump schemes typically involve over-hyping the value of
stocks or, in this case cryptocurrency, by holders so that they can
be sold at artificially high prices.

“McAfee and Watson used social media to perpetrate an age-old
pump-and-dump scheme,” FBI assistant director William Sweeney
said.

“When engaging in illegal activity, simply finding new ways to
carry out old tricks won’t produce different results.”

McAfee and Watson also used Twitter to promote digital tokens on
behalf of initial coin offerings without disclosing they were being
paid for their efforts by the startups, according to the
indictment.

McAfee, 75, is in custody in Spain pending a decision on his
extradition to the United States where he is wanted for tax
evasion.

He has been held at a prison near Barcelona since he was
arrested in the Spanish city in October just as he was about to
board a flight to Istanbul.

The arrest followed his indictment in June in the United States
for tax evasion and willful failure to file tax returns between
2014 and 2018, despite earning millions from consulting work,
cryptocurrencies and selling the rights to his life story.

Since making a fortune with his eponymous antivirus software in
the 1980s, McAfee has become a self-styled cryptocurrency guru.

He has one million followers on Twitter, where he describes
himself as a “lover of women, adventure and mystery.”

McAfee made headlines after he moved to Belize and his neighbor
in the Central American country was mysteriously murdered in 2012,
a crime that remains unsolved.

[AFP]

The creator of McAfee computer security software was facing
charges Friday that he cashed in on a “pump-and-dump” scheme, by
promoting cryptocurrencies on Twitter to drive up their value.

John McAfee, founder of the antivirus firm that bears his name,
and Jimmy Watson face charges of conspiracy, fraud, and money
laundering in connection with schemes to trick cryptocurrency
investors, according to an indictment unsealed by the US Department
of Justice.

“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,” US attorney
Audrey Strauss said in a release.

McAfee, Watson, and other members of their “cryptocurrency team”
allegedly “raked in more than $13 million from investors they
victimized with their fraudulent schemes,” according to
Strauss.

Pump-and-dump schemes typically involve over-hyping the value of
stocks or, in this case cryptocurrency, by holders so that they can
be sold at artificially high prices.

“McAfee and Watson used social media to perpetrate an age-old
pump-and-dump scheme,” FBI assistant director William Sweeney
said.

“When engaging in illegal activity, simply finding new ways to
carry out old tricks won’t produce different results.”

McAfee and Watson also used Twitter to promote digital tokens on
behalf of initial coin offerings without disclosing they were being
paid for their efforts by the startups, according to the
indictment.

McAfee, 75, is in custody in Spain pending a decision on his
extradition to the United States where he is wanted for tax
evasion.

He has been held at a prison near Barcelona since he was
arrested in the Spanish city in October just as he was about to
board a flight to Istanbul.

The arrest followed his indictment in June in the United States
for tax evasion and willful failure to file tax returns between
2014 and 2018, despite earning millions from consulting work,
cryptocurrencies and selling the rights to his life story.

Since making a fortune with his eponymous antivirus software in
the 1980s, McAfee has become a self-styled cryptocurrency guru.

He has one million followers on Twitter, where he describes
himself as a “lover of women, adventure and mystery.”

McAfee made headlines after he moved to Belize and his neighbor
in the Central American country was mysteriously murdered in 2012,
a crime that remains unsolved.

[AFP]