On October 5, 2020, the SEC alleged that McAfee and Watson promoted ICO
investments on Twitter without disclosing that they were paid for them.
The United States Securities and Exchange Commission (SEC) obtained
the final judgment for an initial coin offering (ICO) promotion scheme
against late entrepreneur John McAfee and accomplice Jimmy Gale Watson, Jr., filed on October 5, 2020.
In the original complaint,
the SEC alleged that McAfee and Watson promoted ICO investments on
Twitter without disclosing that they were paid for them. Watson
allegedly assisted McAfee in negotiating promotional deals with ICO
issuers and cashing out the crypto payments, among other pump-and-dump
charges.
The U.S. District Court for the Southern District of New
York found Watson guilty of violating the law and imposed a cumulative
fine of $375,934.86. In addition, Watson has been barred from
participating in ICO-related issuance, purchase, offer or sale. The
litigation states:
“However, that such injunction shall not prevent Watson from purchasing or selling securities for his own personal accounts.”
Providing
closure to the impending case, the SEC's claims against McAfee were
dismissed after the Commission filed a notice of death for the infamous
entrepreneur.
Related: US Treasury calls for public comment on digital asset policy, following Biden’s executive order
The
U.S. Treasury sought input from the public to include in reporting to
the president on the possible implications of digital assets on finance
and payment infrastructures. Sharing his views on the matter, Nellie
Liang, Under Secretary of the Treasury for Domestic Finance stated:
“For
consumers, digital assets may present potential benefits, such as
faster payments, as well as potential risks, including risks related to
frauds and scams.”
Therefore, Liang hopes to gain input
from Americans and market participants to understand better the impacts
of mainstreaming crypto assets.
source link : https://cointelegraph.com/news/sec-dismisses-claims-against-john-mcafee-fines-accomplice-for-ico-promo
