Earlier this month, the US Department of Justice indicted virus pioneer John McAfee on seven counts of fraud and money laundering. These charges are being brought against his crypto activities from 2017 to 2020.
It may take some time before McAfee actually faces these charges in court, as he is currently under arrest in Spain under another power of attorney issued by the IRS. While extraditing criminals from Spain to the US should be simple, in recent years there has been a much weaker attitude in the European Union toward returning people to the US, given the “accidental” application of the law and what many consider archaic. The prison system.
To better understand how this affects projects, those unfamiliar with the American legal system should start by identifying the participants. The Department of Justice deals with criminal cases, the IRS prosecutes and administers tax cases, and the Securities and Exchange Commission is one of five civilian regulatory agencies that work on securities laws. To understand this better, let’s look at each component separately.
In mid-2017, McAfee took to Twitter to talk about encryption in general. He has undoubtedly noticed the effect he had on the cryptocurrency market and the interest that he paid to it. Later in 2017, after a large number of users poured into tweets, he started talking more specifically about other projects. We’ll talk about how he chose these projects later.
In all honesty, his use of Twitter wasn’t limited to crypto activity this whole time. During the same period, he also talked about other things, such as a possible planned presidential campaign, and wanted to love a whale and eat his “waste” if Bitcoin (BTC) didn’t reach a certain price.
Regardless of affiliation, it was the encrypted tweets that stunned McAfee. Let’s see how this might affect crypto promoters.
The Department of Justice considers all cryptocurrencies as collateral
When using securities laws, the Department of Justice considers all cryptocurrencies a form of security. This means, slightly differently from the SEC, that there is no separate classification as a distinctive instrument symbol. If you sell cryptocurrency, regardless of how the project looks at it, the Department of Justice will treat it as collateral, especially if the reward is paid through a public company.
The biggest aspect of this problem is that McAfee decided to liquidate many of its cryptocurrencies through companies listed on the New York Stock Exchange, and again adding violations of US regulations, which is a potential crime.
If you have stock of the cryptocurrency you sell, disclose it.
The Department of Justice views McAfee’s tweets as fraud. Artificially encouraging (encouraging) people to increase the cost of a project before selling everything you own is a scam. You, in her opinion, are robbing people. Make sure that if you sell any type of cryptocurrency on Twitter, you are disclosing the stocks you may have in the cryptocurrency itself.
The Department of Justice uses market manipulation laws to promote cryptocurrency
The Department of Justice believes that it is possible to manipulate the cryptocurrency market in the same way that you could manipulate the stock market. it’s huge. The cryptocurrency market has always maintained a certain level of independence from the regulators; However, by this measure, the Ministry of Justice is acting because the cryptocurrency market is a fully regulated body. Projects, consultants, and experts need to be used with caution when moving forward with a project. However, we are not currently sure whether this market manipulation was caused by a liquidation of funds through a company that is publicly traded on the New York Stock Exchange. Time will tell.
Tax powers are still stuck in the days of Al Capone
In the days of the gangs, it was nearly impossible for the United States government to capture the infamous Al Capone. In addition to the countless alleged murders, money laundering, and general organized crime, Capone was eventually arrested on tax evasion charges. This is evidence the US has been distributing for years – if they want you to be in jail, they are citing tax laws. US tax rules have far-reaching effects on US citizens and citizens. Therefore, if you are a US citizen, resident, or corporation, you need to make sure that your tax is correct. If you do business in the United States, make sure your taxes are correct.
This only applies to citizens of the United States.
The truth is that the laws used by the Ministry of Justice are not a standard set of laws for all countries. For example, Russian securities laws are very different from those of the United States.