SEC Fines John McAfee’s Associate $375K in Penalties for ICO Promotions – Jimmy Gale Watson, a former associate of the now-deceased John McAfee, was fined for being paid to promote pump and dump-fashioned initial coin offerings (ICOs) according to a Securities and Exchange Commission (SEC) judgment. Watson has been prohibited from taking part in any commercially-based or professionally-offered security and virtual currency schemes by the SEC, and he must pay fines totaling about $375,000.
While Jimmy Gale Watson, one of John McAfee’s associates, was fined by the SEC and disqualified from professional financial service and brokerage programs, John McAfee’s remains are still in a morgue in Spain. After his detention in Texas, Watson—who was reportedly an “executive adviser” of the “McAfee Team”—was charged with money laundering and securities fraud. Watson and McAfee were charged for supporting ICOs after receiving payment and making money through “pump and dump” schemes by U.S. law enforcement.
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The lawsuit has proceeded since the former “McAfee Team” associate entered a not-guilty plea in March 2021, and the SEC’s final judgment was filed on July 13, 2022. According to the SEC’s decision, Watson must pay a fine of almost $375K in penalties and is no longer permitted to handle securities and cryptocurrency in a professional context.
When Watson was charged, Manhattan U.S. Attorney Audrey Strauss explained how he allegedly used McAfee’s Twitter account to promote the ICO ventures. She stated that there was “a strong amount of evidence” on McAfee’s Twitter account.
In a statement on March 5, Strauss claimed that “the defendants allegedly utilized McAfee’s Twitter account to broadcast comments to hundreds of thousands of his followers praising various cryptocurrencies while making fraudulent and deceptive claims to hide their real, self-interested intentions.”
While John McAfee is said to have committed suicide in Spain just over a year ago, his widow Janice McAfee disagrees with the Spanish government’s account. In July 2021, McAfee’s widow stated, “I’m not buying it.”
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John’s body is still in the morgue due to the ongoing legal issues surrounding Janice McAfee and other family members’ petition to the Spanish High Court to have a different autopsy performed on him. Watson might be charged with additional fraud in the future, but McAfee received a Notice of Death, and the SEC’s rights for relief related to McAfee’s alleged offenses have been waived.
