John McAfee, the 74-year-old software magnate-turned-crypto-bull, has been sued by SEC for past promotion of initial coin offerings (ICOs) on social media. McAfee purportedly got BTC and ETH worth more than $11.6 million for advancing seven ICOs in 2017 and 2018.
The regulator claimed that from around November 2017 through February 2018, McAfee recommended cryptographic forms of money, paid to promote. He falsely denied, however, being paid by the issuers in any way.
SEC Complaint Against John McAfee
The SEC laid out the protections infringement in a 55-page objection documented Monday in the U.S. Area Court, Southern District of New York. As per the SEC, McAfee raised a sum of $23.2 million from ventures that raised a combined $41 million.
Specifically, McAfee got accused of not revealing that he got paid to promote the ICOs by the issuers. He supposedly dishonestly professed to be a financial specialist as well as a specialized counsel when he suggested a few ICOs. McAfee urged investors to purchase the securities sold without disclosing his intention of simultaneously trying to sell his holdings. Also, he did not mention that he had paid another third-party promoter to tout the protections.
He is said to have engaged in a practice known as “scalping” as to at least one digital asset security. It is done by accumulating massive amounts of digital asset security and promoting it on Twitter without unveiling his expectation to sell it.
Banning McAfee
The SEC is looking to impose McAfee civil penalty as well as disgorgement of ill-gotten gains, with interest. The organization likewise wants to ban permanently from serving as an officer or director of any listed company or any company that files reports to the agency.
The SEC is also seeking charges against Jimmy Gale Watson, Jr., a guardian to McAfee. He got accused of helping and abetting the offer of the computerized monetary forms, among other claims.
Tax Evasion Claims
In a different activity reported by the Department of Justice, McAfee has gotten accused of tax evasion. Captured in Spain, he is awaiting extradition.
In brief, declaring the capture and unsealing of indictment documents, the DOJ likewise details that the charges are bound to McAfee, an individual. They did not find any connection with the anti-virus organization bearing his name.
The DOJ case details ten counts against the business visionary. McAfee faced five tallies of tax evasion, each carrying a maximum penalty of 5 years imprisonment. He also faced five counts of willful failure to file a tax return, each carrying a maximum penalty of one year in prison.
