The former bodyguard to anti-virus entrepreneur John McAfee was arrested in Texas on March 4 and charged with assisting in two crypto scams that allegedly duped investors out of $13m.
Jimmy Gale Watson Jr, who was also an executive advisor to the McAfee team, is facing multiple charges, including wire fraud, cryptocurrency scams, money laundering and conspiracy to commit commodities and securities fraud.
Watson's charges date to 2017 and 2018 when he was involved in what has been described as “pump and dump” schemes. The McAfee team bought big sums of altcoins and then boosted their price by endorsing them publicly and driving their value before finally selling their stakes.
In an indictment dated March 5, Manhattan district attorney Audrey Strauss said: “McAfee, Watson, and other members of McAfee’s cryptocurrency team allegedly raked in more than $13m from investors they victimized with their fraudulent schemes.”
Meanwhile, McAfee himself is in prison in Spain due to a tax evasion proceeding. He was arrested in October 2020. The US government is looking to extradite him to face a number of charges relating to the period 2014 to 2018.
McAfee has earned millions in recent years for various activities, including “promoting cryptocurrencies, consulting work, speaking engagements and selling the rights to his life story for a documentary”.
McAfee has been known to embrace many currencies with dubious pricing and prospects. He claimed that Bitcoin would be worth seven figures and publicly supported Dogecoin, although DOGE is finally doing a little better, but that is thanks to a grassroots movement known as WallStreetBets on Reddit.
Watson and McAfee are both awaiting their reckoning. If you want to check out just how popular Dogecoin is, you can swing by some of the casinos that endorse it out there. Check out 1xBit, FortuneJack and BitStarz for starters.