Feds indict John McAfee for cryptocurrency pump-and-dump fraud: Author – Timothy B. Lee

Ars Technica

John McAfee on his yacht off the coast of Cuba in 2019.

Enlarge / John McAfee on his yacht off the coast of Cuba in 2019. (credit: Adalberto ROQUE / AFP / Getty)

Federal prosecutors have indicted noted cybersecurity eccentric John McAfee for securities and wire fraud for misleading investors at the peak of the last cryptocurrency boom. In late 2017 and early 2018, McAfee urged his hundreds of thousands of Twitter followers to invest in a number of obscure cryptocurrencies. Prosecutors say he failed to disclose his own financial stake in those tokens—and in some cases outright lied about it.

McAfee has been in custody in Spain since his arrest at a Barcelona airport last October. He was already facing extradition to the United States on tax evasion charges; the self-described Libertarian hasn’t filed a tax return for several years. Now he will face additional charges of securities and wire fraud alongside bodyguard Jimmy Watson, who allegedly helped McAfee carry out some of his pump-and-dump schemes.

The criminal complaint covers much of the same ground as a civil lawsuit filed by the Securities and Exchange commission at the time of his arrest last October.

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