The US Securities and Exchange Commission (SEC) complained about John McAfee, one of the well-known names in the cryptocurrency industry. The agency claims that McAfee inflated prices without disclosing that it was taking money from token projects.
The US Securities and Exchange Commission (SEC) complained about John McAfee, one of the cryptocurrency leaders.
The agency claims that John McAfee, described as “a businessman and computer programmer with hundreds of thousands of Twitter followers,” made more than $ 23 million by proposing at least seven ICO projects to Twitter followers from November 2017 to February 2018.
In the case file, it is stated that the tokens sold with ICOs are securities and McAfee gave false and misleading advice to his followers.
McAfee did not reveal that companies were paying him to promote ICOs, according to the SEC’s claim. It is against federal securities laws to promote a security in the US without disclosing that money has been received.
It is claimed that the ICOs promoted by McAfee collected at least $ 41 million and McAfee was paid about $ 23 million 200 thousand. What’s more, the SEC alleges that McAfee lied by refusing when asked if he was paid.
Allegedly, McAfee’s tweets seemed to be neutral investment advice, but these tweets were paid for. It is noted that the famous cyber security expert still holds the tokens he obtained from these ICOs after the disclosure of paid promotion, and he tries to sell them while encouraging investors to buy these tokens.
Payments to McAfee
Finally, it was stated in the file that McAfee was paid by projects with $ 11 million 600 thousand worth of Bitcoin and Ether, in addition to the tokens it promoted, worth $ 11 million 500 thousand.