Jakarta, CNBC Indonesia – McAfee antivirus software founder John David McAfee faces up to 100 years in prison for being convicted on charges of fraud and money laundering by the United States Department of Justice.
John David McAfee and his partner Jimmy Gale Watson Jr. were accused of participating in a bogus cryptocurrency promotion scheme to investors that generated over US $ 13 million in funds. This action was allegedly carried out in December 2017 to October 2018.
They are suspected of exploiting Twitter and “investor enthusiasm in the cryptocurrency market through lies and frauds to make millions of dollars,” said US Attorney Audrey Strauss, launched CNN International, Wednesday (10/3/2021).
Assistant FBI Director William F. Sweeney Jr. said the accusation boils down to the ‘pompom’ scheme of cryptocurrency pricing. The US Justice Department has accused the two of buying cryptocurrency and reporting it to McAfee’s followers on Twitter in order to raise prices and then sell at a profit.
John McAfee is said to have bought a large number of “altcoin” cryptocurrencies at low prices and then recommended his followers on Twitter to get people to buy them, but without disclosing that he owns them.
In a second alleged scheme, McAfee and his team used his Twitter account to promote an initial coin offering (ICO), without disclosing that he was compensated by the ICO issuer for doing so.
According to the indictment, if found guilty of all the charges, each could face up to 100 years in prison and financial penalties.
The Justice Department said the Securities and Exchange Commission and the Commodities Futures Trading Commission had also filed civil suits against John McAfee and Jimmy Watson in parallel enforcement action.
McAfee is currently detained in Spain and awaiting extradition to the US. He was charged by US prosecutors in a case related to alleged tax evasion.
(roy/dru)
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