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Antivirus software pioneer John McAfee indicted for cryptocurrency fraud: U.S. officials

March 5, 2021
Reading Time:2 mins read
Antivirus software pioneer John McAfee indicted for cryptocurrency fraud: U.S. officials

By Jonathan Stempel, Chris Prentice

NEW YORK/WASHINGTON (Reuters) – John McAfee, the antivirus software pioneer whose former company still bears his name, has been indicted on fraud and money laundering conspiracy charges stemming from two cryptocurrency schemes, the U.S. Department of Justice said on Friday.

FILE PHOTO: John McAfee, co-founder of McAfee Crypto Team and CEO of Luxcore and founder of McAfee Antivirus, speaks at the Malta Blockchain Summit in St Julian’s, Malta November 1, 2018. REUTERS/Darrin Zammit Lupi

Authorities accused McAfee and his bodyguard, Jimmy Gale Watson Jr, of exploiting McAfee’s large Twitter following to artificially inflate prices of “altcoins” through a pump-and-dump scheme, and concealing payments McAfee received

from startup businesses to promote initial coin offerings.

McAfee and his accomplices allegedly reaped more than $13 million from the schemes, according to the U.S. Department of Justice. The Commodity Futures Trading Commission filed related civil charges concerning the alleged pump-and-dump scheme.

Lawyers for McAfee and Watson could not immediately be identified.

McAfee is being detained in Spain following his arrest there on tax evasion charges, which was announced in October, the Justice Department said. Watson was arrested on Thursday night, the department added.

Both also face civil charges by the U.S. Securities and Exchange Commission, which in October accused McAfee of concealing more than $23.1 million he made from…

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