SEC Indicts John McAfee, Police Arrest Him In Spain
- McAfee is being indicted on hiding millions in income, evading taxes on multiple occasions, and pumping ICOs.
- The accused might face up to 5 years in prison with an additional 1 year for each count of willful failure to file a tax return.
John McAfee speaking at the 2016 Politicon at the Pasadena Convention Center in Pasadena, California on June 25, 2016. Gage Skidmore/Flickr
On September 5, the SEC unsealed the criminal indictment against John McAfee, the antivirus software pioneer behind one of the world’s largest dedicated technology security companies. The cryptocurrency enthusiast was arrested in Spain and is currently pending extradition to the U.S.
According to the Commission, McAfee allegedly evaded his tax liability by directing his income to be paid into bank accounts and cryptocurrency exchange accounts in the names of nominees. Moreover, the software developer is also accused of attempting to evade the IRS by concealing assets, including real property, a vehicle, and a yacht, in the names of others.
McAfee is also sued for pumping ICOs without disclosing information about the payments he received in order to do so. In the period 2017-2018 alone, the accused is said to have received more than $11.6 million for promoting seven separate ICOs. He also allegedly received $11.5 million in the promoted tokens, with no projects being named by the Commission yet.
“The defendant, JOHN DAVID MCAFEE, earned millions of dollars in income from various sources, including but not limited to: (1) from 2014 through 2016, for speaking engagements; (2) from 2015 through 2016, for the rights to his life story for a documentary; (3) from 2016 through 2018, for work as a consultant; and (4) from 2017 through 2018, for promoting cryptocurrencies,” the indictment stated.
If found guilty, McAfee might face up to five years in prison on account of tax evasion and up to one year on each count of willful failure to file a tax return, with the possibility of a supervised release period, restitution, and monetary penalties. The SEC is also seeking civil penalties and an order prohibiting McAfee from serving as a public officer again in the future.
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- Mashinsky was also arrested in New York on Thursday, and later charged by the Department of Justice with securities fraud, commodities fraud, and wire fraud.
Former Celsius CEO Alex Mashinsky on Centre Stage during day three of Web Summit, Lisbon, Portugal, 4 November 2021.Piaras Ó Mídheach/Web Summit via Sportsfile/Flickr
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- In early 2021, Chinese authorities froze certain Alameda accounts on two of China’s largest crypto exchanges”, which reportedly held more than $1 billion worth of crypto assets.