The US Securities and Exchange Commission (SEC) has filed fraud allegations against a popular supporter of blockchain and cryptocurrency and technology entrepreneur John McAfee.
The allegations show that the entrepreneur failed to disclose that certain organizations pay him to promote their ICO. According to the SEC, it is illegal flattery and a violation of federal securities laws.
According to the documents presented by the Securities and Exchange Commission, McAfee took advantage of his massive followers on Twitter to recommend at least seven Initial Coin Offerings (ICOs). He also used his reputation to make more than $23.1 million in undisclosed salaries.
These allegations also accuse McAfee of fraudulently claiming to be an investor or technical advisor to the ICO. Thus giving the impression that he has reviewed these companies. He indicated that he was willing to invest his own funds in these companies. However, according to the securities regulatory body, he has received payment for the tweets disguised as fair investment advice.
Another claim is that a blogger exposed McAfee which resulted in him owning worthless cryptocurrencies. He then used his Twitter profile to add value to these cryptocurrencies without revealing any intention to sell.
What the SEC calls “scalping” is a process that enables promoters to sell their securities quickly and profitably through deceptively generated market advantages, and which violates federal securities laws.
McAfee reportedly received $11.6 million in BTC and ETH and $11.5 million in additional tokens for his activities.
UPDATE: John McAfee Arrested
In an updated report, John McAfee has been arrested in Spain and is pending extradition to the United States. Local authorities arrested him on charges of tax evasion.
The Treasury Department announced that the indictment is yet to be opened. However, the department accused John David McAfee of tax evasion and deliberate negligence to file tax returns. After local authorities arrested McAfee in Spain prior to extradition, the charges were opened.
According to the indictment, from 2014 to 2018, McAfee allegedly failed to file tax returns despite significant income from these sources.
According to the indictment, McAfee allegedly evaded tax by paying his income in bank and cryptocurrency accounts on behalf of the nominee. The indictment also found that McAfee attempted to evade the IRS. This he did by hiding assets such as real estate, vehicles, and yachts in the names of others.