The United States Securities and Exchange Commission is always vigilant and strict regarding some illegal activities within the crypto space. The body is popularly known within and outside American, primarily because it sued Ripple’s executive, causing a significant drop from one of the world’s most widely used digital assets.
The regulatory body said that the executives failed to register the tokens, thereby evading some liabilities. Although the problems continue for Ripple as XRP has been delisted from many platforms, it’s great to know that the asset was finally recording some notable gains. Now, SEC is out for John McAfee, as the body said it already informed Spanish authorities of his crimes.
SEC plans to serve legal documents to McAfee
The watchdog is saddled with the duty of keeping US cryptocurrency space good and safe for investors, as many ICOs have defrauded unsuspecting investors in the space. Some firms have accused the regulatory body of lacking clarity regarding its regulations, making it hard for some service providers to avoid making some minutes.
Recently, The body said it expects the Spanish government to tell the app creator that the United States has some legal claims against him. The watchdog shared that the computer firm, McAfee’s founder, had promoted some initial coin offerings without informing the public that he was paid for the promotion. He is a very popular figure within the space, and getting people’s attention comes easy.
SEC explained that the companies handling the ICOs projects discussed with the influencer to get him to promote the coin offerings on social media platforms. His Twitter handle got the most attention due to his impressive Twitter following, which would assure many people taking interest into putting money into the newly created token.
The influencer’s failure to disclose that he got paid for his promotion was to evade taxation from the US government. SEC said the ICOs’ promotion let the entrepreneur earn millions of dollars, and he still failed to pay his taxes.
Authorities arrested McAfee for tax evasion
John McAfee was reportedly arrested in Spain by Authorities when he wanted to leave the region. When the suspect eventually got arrested, the US regulatory body took significant steps to serve him some documents due to his crimes. The document is “via Hague Convention, 2020.” The commission said it contacted appropriate authorities in Spain, and the latter assured that the entrepreneur would be served the legal documents. The authorities would take McAfee to America, where he would face the charges.
The watchdog claimed that John McAfee received over $20 million to promote the unregistered tokens, which had their initial coin offering. The businessmen failed to tell appropriate bodies that he took almost half of the money the bodies made from the initial coin offering as compensation for his promotion.
The authority explained that influential people cannot use their platforms to promote coin offerings without exposing the money they paid for the promotional services. He received his payments in cryptos such as Bitcoin, Ethereum, and other tokens, which he promoted.
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