The United States Securities and Exchange Commission (SEC) has obtained final judgment for an initial coin offering (ICO) promotion program against late entrepreneur John McAfee and accomplice Jimmy Gale Watson, Jr., filed October 5, 2020.
In the original version complaint, the SEC alleged that McAfee and Watson promoted ICO investments on Twitter without disclosing that they had been paid for them. Watson allegedly helped McAfee negotiate promotional deals with ICO issuers and collect crypto payments, among other pump-and-dump fees.
The U.S. District Court for the Southern District of New York found Watson guilty of breaking the law and imposed a cumulative fine of $375,934.86. In addition, Watson was prohibited from participating in the issuance, purchase, offer or sale related to the ICO. The dispute states:
“However, this injunction will not prevent Watson from buying or selling securities for his own personal accounts.”
Closing the impending case, the SEC’s claims against McAfee have been dismissed after the Commission filed an obituary for the infamous entrepreneur.
The US Treasury has sought public comment to include in reports to the President on the possible implications of digital assets on financial and payments infrastructure. Sharing her perspective on the matter, Nellie Liang, Under Secretary of the Treasury for Home Finance, said:
“For consumers, digital assets can present potential benefits, such as faster payments, as well as potential risks, including the risk of fraud and scams.”
Therefore, Liang hopes to get feedback from Americans and market participants to better understand the impacts of integrating crypto assets.