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John McAfee thinks the SEC allegations of pump and dump are exaggerated

The businessman is currently being held in Spain pending extradition

Il pump and dump it now seems a fashion in the more or less traditional financial assets sector. What happened in the case of the actions of GameStop, with the intervention of the redditors of WallStreetBets (WSB) has indeed made a considerable impression. Even because for the first time ever the bloodbath on the stock market involved the now infamous hedge funds. That is the speculative funds that have been moving on the markets for decades to divide up the remains of small investors.
A practice which, however, is also focusing the attention of the market supervisory authorities. Which have already given rise to a first transaction in this sense, that relating to the lawsuit filed by Securities and Exchange United States Commission v John McAfee.

Capture - John McAfee finds SEC allegations over pump and dump exaggerated
John McAfee

John McAfee: The SEC allegations are disproportionate

The founder of the cybersecurity house and well-known advocate of cryptocurrencies, he was recently indicted by the SEC for his crypto promotions.
Just in the last few days he published a couple of tweets in which he wanted to have his say on the accusations of the supervisory body. Claiming to consider them completely disproportionate to reality. Remembering that he evaluated each operation with his team and that he was paid with the same coins which then crashed into the markets. A crash that, however, no one could foresee. Furthermore, he added, he never sold a single token with which he was rewarded for his utterances.

What is McAfee accused of?

The Department of Justice (DoJ) accused John McAfee of putting one in place real conspiracy in order to commit securities fraud, computer fraud and money laundering for activities related to its cryptocurrency enterprise, known as the "McAfee Team". A parallel action was filed by CFTC.
Currently is being held in Spain for a separate tax evasion case, pending eventual extradition to the United States.
His story can in fact be considered a sort of prelude to what happened with the pump and dump on GameStop and on some cryptocurrencies, starting from Dogecoin. On which the Securities and Exchange Commission could decide to open a real investigation, to try to better understand its contours. Also in the light of some not exactly transparent behaviors.

Pump and dump: what could happen now?

What happened at the beginning of the year around the actions of GameStop, seems in fact destined to reopen the debate around the so-called Strong Hands of the market. A theory that is years old and which has always found many people willing to give it credit. Finding fertile ground in the ways in which hedge funds move, giving birth to short sales which are not infrequently destined to empty the pockets of the so-called "ox park", that is the small savers. These funds, in fact, move in concert as soon as they see an opportunity for profit, without caring too much about the result of their raids.
A behavior which, however, seems to have found the right punishment in the case of GameStop, when they left billions of dollars on the ground. All of which could have been many more if some companies, starting with Robinhood, had not shown the perverse effects of intertwining with the same funds. By re-proposing a question, that of conflict of interest, well known for example in Italy.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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