John David McAfee And Executive Adviser Of His Cryptocurrency Team Indicted In Manhattan Federal Court For Fraud And Money Laundering Conspiracy Crimes

Mar 5, 2021 · Sourced to the U.S. Department of Justice

The charges described here are allegations. The defendant(s) are presumed innocent unless and until proven guilty in a court of law. This page reflects only what the Department of Justice has publicly announced, and links to the original release.

Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr.

District

Northern Texas

Announced

Mar 5, 2021

Status

Charged

Defendants

John David McAfee — age 75 · Spain · indicted
Jimmy Gale Watson Jr. — age 40 · Texas · arrested

Charges

Conspiracy to commit commodities and securities fraud
Max: 5 years in prisonJohn David McAfee· indicted
Conspiracy to commit commodities and securities fraud
Max: 5 years in prisonJimmy Gale Watson Jr.· indicted
Conspiracy to commit securities and touting fraud
Max: 5 years in prisonJohn David McAfee· indicted
Conspiracy to commit securities and touting fraud
Max: 5 years in prisonJimmy Gale Watson Jr.· indicted
Conspiracy to commit wire fraud (two counts)
Max: 20 years in prisonJohn David McAfee· indicted
Conspiracy to commit wire fraud (two counts)
Max: 20 years in prisonJimmy Gale Watson Jr.· indicted
Substantive wire fraud (two counts)
Max: 20 years in prisonJohn David McAfee· indicted
Substantive wire fraud (two counts)
Max: 20 years in prisonJimmy Gale Watson Jr.· indicted
Conspiracy to commit money laundering
Max: 10 years in prisonJohn David McAfee· indicted
Conspiracy to commit money laundering
Max: 10 years in prisonJimmy Gale Watson Jr.· indicted

Financial actions

fraud proceeds: more than $13 million — Total funds obtained from investors through fraudulent schemes
fraud proceeds: more than $2 million — Illicit profits from altcoin scalping (pump and dump) activities
fraud proceeds: more than $11 million — Undisclosed compensation earned from ICO touting scheme, hidden from ICO investors

From the announcement

“As alleged, 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. The defendants allegedly used McAfee’s Twitter account to publish messages to hundreds of thousands of his Twitter followers touting various cryptocurrencies through false and misleading statements to conceal their true, self-interested motives. McAfee, Watson, and other members of McAfee’s cryptocurrency team allegedly raked in more than $13 million from investors they victimized with their fraudulent schemes. Investors should be wary of social media endorsements of investment opportunities.”

— Audrey Strauss, United States Attorney for the Southern District of New York, U.S. Attorney's Office, Southern District of New York

“As alleged, McAfee and Watson used social media to perpetrate an age-old pump-and-dump scheme that earned them nearly two million dollars. Additionally, they allegedly used the same social media platform to promote the sale of digital tokens on behalf of ICO issuers without disclosing to investors the compensation they were receiving to tout these securities on behalf of the ICO. When engaging in illegal activity, simply finding new ways to carry out old tricks won’t produce different results. Investment fraud and money laundering schemes carry a strict penalty under federal law.”

— William F. Sweeney Jr., Assistant Director-in-Charge, New York Field Office, Federal Bureau of Investigation

Investigating agencies

United States Attorney's Office for the Southern District of New YorkFederal Bureau of InvestigationUnited States Department of Justice, Tax DivisionUnited States Securities and Exchange CommissionCommodity Futures Trading Commission

Case details

Prosecuting office: Southern District of New York

Cryptocurrency FraudInter-Agency Cooperation And Parallel EnforcementInternational Extradition And JurisdictionInvestor ProtectionMoney LaunderingPump-And-Dump / Scalping SchemeSecurities And Touting Fraud (Ico Promotion)Social Media ExploitationWire Fraud

Primary source

Every fact above is drawn from the Department of Justice's own announcement — a public-domain government record.

Read the original DOJ release →

This is a research and reference page compiled from public DOJ announcements, not legal advice. Details reflect the government's statements as of its release date and may not capture later developments such as appeals, dismissals, or overturned convictions. Defendants are presumed innocent unless and until proven guilty.