John McCabe has been charged with “Pump and Dump” cryptocurrency scheme fraud in securities. Federal prosecutors have filed a lawsuit against McAfee and his executive adviser and bodyguard, Jimmy Gale Watson Jr., claiming the pair solicited Twitter followers to invest in cryptocurrencies such as Redcoin and Dojecoin.
U.S. “McAfee and Watts exploited the social media platform and enthusiasm widely used by investors in the emerging cryptocurrency market to make millions through lies and fraud,” attorney Drew Strauss said in a statement. “The defendants accused McAfee’s Twitter account of publishing messages to thousands of his Twitter followers, tampering with various cryptocurrencies through false and misleading statements to conceal their true, self-interested motives.”
The pair allegedly carried out their plan between December 2017 and October-October 2018. McAfee used his verified Twitter account, which currently has about 1 million followers, to recommend a “coin of the day” or a “coin of the week”. The indictment states that McFae claimed no stake in these Velcoins; In fact, McAfee will allegedly buy large quantities using Bitcoin, then reload it after his followers raise the price.
McAfee and Watson are facing seven charges, each carrying a sentence of five to 20 years in prison. Criminal charges include wire fraud, conspiracy to defraud goods and security, and conspiracy to launder money.
McCfee, known for founding an antivirus company called, was arrested last year on separate tax evasion charges. The Securities and Exchange Commission will issue initial coin offerings or ICOs in October. Sued him for cheating. And in 2019, the court ordered him to pay 25 25 million for the 2012 murder of his neighbor in Belize. (McAfee has denied involvement and refused to pay funding.) The allegations add another layer to his alleged crimes.
