John McAfee’s personal security guard, accused of conspiring with his boss in a crypto fraud case, has pleaded not guilty.
- Jimmy Gale Watson Jr., who was indicted earlier this month with the controversial tech entrepreneur, entered his plea in a filing with U.S. Magistrate Judge Kevin Fox in the Southern District of New York on Monday.
- He is alleged by the U.S. Department of Justice to have duped cryptocurrency investors out of more than $13 million with McAfee, who is also being charged with several counts of wire fraud, securities fraud and money laundering.
- The defendants allegedly used McAfee's Twitter account to tout various digital currencies, driving up their value before selling them.
- They are claimed to have used misleading statements and to have not disclosed they were paid for the promotions.
- The "pump and dump" scheme, according to prosecutors, banked McAfee and Watson more than $2 million in profit while their recommended altcoins declined substantially in value.
- The Commodity Futures Trading Commission (CFTC) brought separate charges, filing for injunctive relief and civil penalties.
- McAfee was arrested in Spain in October on separate tax charges and awaits extradition to the U.S.