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McAfee Creator Charged in Cryptocurrency Scam, Allegedly Raked in Over $13 Million From Investors

March 6, 2021
Reading Time:2 mins read
McAfee Creator Charged in Cryptocurrency Scam, Allegedly Raked in Over $13 Million From Investors

The creator of McAfee computer security software was facing charges Friday that he cashed in on a “pump-and-dump” scheme, by promoting cryptocurrencies on Twitter to drive up their value.

John McAfee, founder of the antivirus firm that bears his name, and Jimmy Watson face charges of conspiracy, fraud, and money laundering in connection with schemes to trick cryptocurrency investors, according to an indictment unsealed by the US Department of Justice.

“McAfee and Watson exploited a widely used social media platform and enthusiasm among investors in the emerging cryptocurrency market to make millions through lies and deception,” US attorney Audrey Strauss said in a release.

McAfee, Watson, and other members of their “cryptocurrency team” allegedly “raked in more than $13 million (roughly Rs. 95.1 crores) from investors they victimized with their fraudulent schemes,” according to Strauss.

Pump-and-dump schemes typically involve over-hyping the value of stocks or, in this case cryptocurrency, by holders so that they can be sold at artificially high prices.

“McAfee and Watson used social media to perpetrate an age-old pump-and-dump scheme,” FBI assistant director William Sweeney said.

“When engaging in illegal activity, simply finding new ways to carry out old tricks won’t produce different results.”

McAfee and Watson also used Twitter to promote digital tokens on behalf of initial coin offerings without disclosing they were being paid for their efforts by the startups, according to…

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