The software developer could go to jail for several years.
Eccentric software developer and antivirus pioneer John McAfee is charged with cryptocurrency fraud and money laundering conspiracy in the United States. McAfee is said to have stolen several million dollars as a result.
McAfee and his bodyguard advertised certain cryptocurrencies via McAfee's Twitter account between December 2017 and October 2018. Back then, McAfee regularly recommended mostly unknown digital currencies under the motto “Coin of the Day” or “Coin of the Week”.
Coin of the day: Humaniq (HMQ). In the spirit of Christmas, there is no better coin. Their mission is true to the very purpose of crypto – to endow the disenfranchised. HMQ, an overlooked gem, is, in my opinion, the most undervalued coin in existence. https://t.co/1z3mGUk274
– John McAfee (@officialmcafee) December 25, 2017
“Pump and dump” schemes
McAfee told his more than 1 million Twitter followers that he did not own any of these advertised cryptocurrencies. He recommends them because they are based on innovative technology or have an interesting business model.
However, it was already clear then that the software developer would charge more than $ 100,000 for such a tweet. The rates for the advertised cryptocurrencies usually rose by more than 100 percent after a McAfee tweet.
Coin of the week: Lumen (XLM) – called Stellar by some – though Stellar is the name of the network that created the coins. One of the fastest and cheapest crypto transactions. Lumens facilitate the financing of Third World projects and is called by some “The next Bitcoin”.
– John McAfee (@officialmcafee) January 15, 2018
Accusation: unfair advertising
In the indictment, McAfee is now accused of having bought shares in the digital currencies before his promotional tweet. As soon as he recommended the respective coins and the price went through the roof, McAfee sold his shares with high profits, according to the indictment.
The 75-year-old was arrested in Spain in October at the instigation of US law enforcement officers who had already brought charges against him for tax evasion and unfair advertising of cryptocurrencies. McAfees has not yet commented on the allegations. According to the US authorities, he is still in custody in Spain.
In total, McAfee and his bodyguard are charged on seven counts, each of which has a maximum sentence of 5 to 20 years, according to the Justice Department. If convicted, McAfee could go to jail for extended periods of time.
