John McAfee Arrested in Spain on Allegations of Tax Evasion
John McAfee, the 74-year-old cybersecurity millionaire, and former presidential candidate has been arrested in Spain on allegations of tax evasion and awaiting extradition to the U.S. If convicted he will have to spend up to five years behind bars for charges of tax evasion and willful failure to file tax returns.
The U.S. Securities and Exchange Commission (SEC) filed a suit against John McAfee last Monday for his promotions of initial coin offerings (ICOs) without disclosing that he is getting paid by the ICO issuers. This is a violation of U.S securities law where McAfee allegedly received Bitcoins (BTC) and Ethereum (ETH) worth closer to US$ 11.6 M during 2017 and 2018. SEC also revealed that he has allegedly received US$ 11.5 M in the promoted tokens, which names of the tokens yet to be published.
Per the complaint: “From at least November 2017 through February 2018, McAfee leveraged his fame to make more than $23.1 million U.S. Dollars (‘USD’) in undisclosed compensation by recommending at least seven “initial coin offerings” or ICOs to his Twitter followers.”
Seven unidentified ICO issuers mentioned by the SEC, and they have secretly communicated with McAfee and his team to get him publicly endorse their ICOs. As a payback, McAfee has received those coins and Bitcoins. Altogether he has raised a total of US$ 23.2 M from projects.
“McAfee’s extravagant posts (such as tweeting predictions about BTC price increases and promising to ‘eat my d**k on national television’ if such predictions did not pan out) … generated an enormous amount of publicity,” the SEC said in its complaint.
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