The SEC has won a federal lawsuit against Jimmy Gale Watson Jr., a former assistant to entrepreneur John McAfee.
Watson Jr. was the second defendant in the case, which started in October 2020 at the initiative of the SEC. The court has now banned him from selling or advertising digital assets, and has ordered him to pay more than $375,000.
Gale Watson Jr. reportedly helped his boss promote Twitter’s initial coin offering and didn’t say he was paid for it.
The SEC has claimed McAfee made more than $23.1 million advertising at least seven token sales that sold “digital securities.” According to the plaintiff, the entrepreneur’s statements misled investors.
The US Department of Justice has accused him of tax evasion in a separate complaint. McAfee, who was arrested in Spain, called the authorities’ claims “bloated” and politically motivated.