WEBVTT - McAfee Part 5: The Descent

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<v Speaker 1>Francois Garcia is a Canadian filmmaker. He purchased the rights

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<v Speaker 1>to make a documentary based on John mccafee's life in

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<v Speaker 1>late twenty twelve, about two months after McAfee's neighbor in

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<v Speaker 1>Belize turned up dead, and over the next couple of

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<v Speaker 1>years he would try to line up meetings with people

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<v Speaker 1>in the film industry. Never stood involved. We're talking to

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<v Speaker 1>several high profile directors as well, So idol, John, I

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<v Speaker 1>want to set up a meeting. You guys can chat.

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<v Speaker 1>Francois says that during this period, John mccafee was taking bathsols,

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<v Speaker 1>a very addictive synthetic drug known to cause euphoric highs

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<v Speaker 1>and hallucinations, which was making it hard to set up

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<v Speaker 1>meetings because McAfee said he didn't feel safe anywhere. He

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<v Speaker 1>had fears of the cartel everywhere he went. So, can

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<v Speaker 1>we do this in La? In La, it's too dangerous

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<v Speaker 1>for me, too many Mexican cortels. Okay, John, all right?

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<v Speaker 1>Can we do this in New York? No? I can't

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<v Speaker 1>do New York because I can't carry weapons in New York. Therefore,

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<v Speaker 1>I can't protect myself from the cartels like my god Man,

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<v Speaker 1>just to help me out here. I'm not gonna ask

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<v Speaker 1>you every city in the United States. Just give me

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<v Speaker 1>a city. McAfee chooses Boston. He tells Francois that he's

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<v Speaker 1>Irish and he feels like he'd be safe there, surrounded

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<v Speaker 1>by other Irish people. So they're at the Hilton in

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<v Speaker 1>Boston waiting in the lobby for the potential director to

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<v Speaker 1>show up, and McAfee starts to get jittery, and he says, sorry,

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<v Speaker 1>I can't do this, I have to leave immediately. The

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<v Speaker 1>hotel is surrounded by cartels all over the lobby. Here

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<v Speaker 1>look at us. There was a Microsoft conference and the

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<v Speaker 1>hotel and I'm like, all I see is blue shirts

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<v Speaker 1>with the Microsoft loco in it. And it's like, well,

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<v Speaker 1>these are all cartel operatives. They are together and like

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<v Speaker 1>they're Microsoft employees and it's like, no, they work for

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<v Speaker 1>the cartel. They don't know it, but they do. McAfee

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<v Speaker 1>starts to spiral in front of Francois. He says he

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<v Speaker 1>wants a limo with tinted windows to take him to

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<v Speaker 1>the airport. Francois notices that the director has just walked

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<v Speaker 1>into the lobby. He wants to salvage the meeting, He

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<v Speaker 1>offers to drive McAfee to the airport in his own

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<v Speaker 1>car so that the director can sit in the back

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<v Speaker 1>with McAfee and discuss the movie. McAfee agrees. They head

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<v Speaker 1>up to his room to pack. Francois sees McAfee's partner

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<v Speaker 1>Jenesis there, then, I haven't seen any drugs yet, but

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<v Speaker 1>it's it's it's obvious. It's like a state of paranoia.

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<v Speaker 1>There's guns everywhere, loaded guns. His fidgety guns falls out

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<v Speaker 1>of his pocket. Janus technologies they were guns, but denies

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<v Speaker 1>that either of them were high in any event. Francois,

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<v Speaker 1>he's cameraman, McAfee, Janis, and the director all pile into

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<v Speaker 1>the car. So off we drive to the airport. All

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<v Speaker 1>of this is on video by away on a car

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<v Speaker 1>chase with invisible cars, and it's like, okay, they're behind us,

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<v Speaker 1>durned left and there's nobody behind us. They're there. Drive faster.

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<v Speaker 1>I can drive faster. And I mean he's holding a

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<v Speaker 1>gun and waving the gun. Can you just point your

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<v Speaker 1>gun down like, because I'm driving and I want to

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<v Speaker 1>hold it in the back of my head. Now, keep

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<v Speaker 1>in mind the director is in the car the whole time,

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<v Speaker 1>seeing everything. When they arrive at the airport, McAfee and

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<v Speaker 1>Janus leave their guns in Francois's black seat and they

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<v Speaker 1>check in for a flight to the UK. As Francois

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<v Speaker 1>is driving the director back, McAfee calls him with one

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<v Speaker 1>more favor to ask. McAfee says he who left his

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<v Speaker 1>own car at the hotel, and he wants Francois to

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<v Speaker 1>give the keys to one of his security guards, who

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<v Speaker 1>drive it to McAfee's house in Tennessee. Francois finds the

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<v Speaker 1>car in the parking garage as soon as they opened

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<v Speaker 1>the car. I mean I cev the arsenal, using the

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<v Speaker 1>word lightly, an arsenal of weapons, all sizes, all over

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<v Speaker 1>the vehicle, and the bags ziplock bags, probably too well,

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<v Speaker 1>and says each full of this substance inside those ziplock bags,

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<v Speaker 1>according to Francois, was a drug similar to bath salts,

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<v Speaker 1>but even stronger. Later, Francois goes out for dinner and

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<v Speaker 1>drinks with the film director. His reaction to the whole thing,

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<v Speaker 1>according to Francois, was what the hell just happened? But

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<v Speaker 1>as it turns out, their meeting was a success. The

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<v Speaker 1>deal goes through. You're listening to Foundering, I'm your host,

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<v Speaker 1>Jamie's harrabay. It's the beginning of the end. When John

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<v Speaker 1>McAfee ran for and lost the Libertarian Party presidential nomination,

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<v Speaker 1>it propelled him to the national stage once again. He

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<v Speaker 1>was on TV regularly discussing politics, civil liberties, and cybersecurity.

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<v Speaker 1>He had largely shrugged off the accusations that he'd murdered

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<v Speaker 1>his neighbor in Belize, and he was able to use

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<v Speaker 1>his fame to court a new sort of wealth, cryptocurrency.

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<v Speaker 1>In this chapter of McAfee's life, he becomes a major

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<v Speaker 1>player in the crypto world. With a single tweet, he

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<v Speaker 1>could send the price of a new digital currency soaring.

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<v Speaker 1>He was living large again and evading taxes, but behind

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<v Speaker 1>the scenes, McAfee was deteriorating. His world was composed of guns, drugs,

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<v Speaker 1>delusions that ruled his life for years. McAfee had pushed

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<v Speaker 1>the notion that he was wanted by one government or another.

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<v Speaker 1>This time because of his dealings in crypto and those

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<v Speaker 1>unpaid taxes. Authorities in the United States really are after

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<v Speaker 1>him and they're closing in. We'll tell you more after

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<v Speaker 1>the break. Stories of John McAfee doing synthetic drugs have

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<v Speaker 1>floated around for years. As early as twenty ten, John

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<v Speaker 1>McAfee was posting on a message board called blue Light

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<v Speaker 1>about his experiments with bath salts. The journalist Jeff Wis

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<v Speaker 1>quotes McAfee's writing, I think it's the finest drug ever conceived.

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<v Speaker 1>I had visual and auditory hallucinations and the worst paranoia

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<v Speaker 1>of my life. Over the years, McAfee posted dozens of

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<v Speaker 1>times on this site, which is now defunct. Another journalist,

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<v Speaker 1>Joshua Davis, asked McAfee about these posts, and he insisted

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<v Speaker 1>it was just a big prank, but then McAfee went

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<v Speaker 1>on to describe elaborate hallucinations to the reporter. For what

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<v Speaker 1>it's worth, Janice McAfee describes him more as a drinker.

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<v Speaker 1>Whatever he was on, it made him super annoid. I

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<v Speaker 1>first spoke to Janus in June of twenty twenty two,

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<v Speaker 1>about a year after John McAfee's death. I specifically wanted

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<v Speaker 1>to ask her about McAfee's repeated insistence that the cartel

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<v Speaker 1>was out to get him. It's a story that Janus

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<v Speaker 1>has corroborated, mostly in tabloids. Like The Daily Mail and

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<v Speaker 1>The Sun, but also in outlets like Newsweek. In fact,

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<v Speaker 1>she said over the years that it was related to

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<v Speaker 1>her past as a sex worker. I didn't know that

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<v Speaker 1>my pimp had been approached by someone who was claiming

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<v Speaker 1>to be a representative of the cartel, the Sinaloa Cartel.

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<v Speaker 1>John McAfee spent years saying that the Sinaloa Cartel was

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<v Speaker 1>after him. It's an international crime ring mostly known for

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<v Speaker 1>drug trafficking. It was led by El Chapo for decades.

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<v Speaker 1>There's no evidence of any truth to McAfee's claims about

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<v Speaker 1>the cartel, and the only other person who seemed to

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<v Speaker 1>believe it was Janus. They knew that we were together

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<v Speaker 1>and they wanted to have me be sort of their

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<v Speaker 1>inside man, you know, giving them information. And Janus says

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<v Speaker 1>that her pimp was in on it. His whole thing

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<v Speaker 1>was like, oh my gosh, we're gonna get so much money.

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<v Speaker 1>And my thing was, okay, I'm going to get away

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<v Speaker 1>from you, Like this was my plan. You know, I'm

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<v Speaker 1>going to get I'm going to use the situation to

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<v Speaker 1>get away from you. While we weren't able to verify

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<v Speaker 1>Janice the story, it's been widely documented that women leaving

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<v Speaker 1>this type of sex work often have a difficult time

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<v Speaker 1>shaking off their traffickers. Maybe Janice and McAfee's fears became

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<v Speaker 1>sandwich together. She was convinced the pimp was following her

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<v Speaker 1>every move with macafe, and he was convinced the cartel

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<v Speaker 1>was out to get him. Here's Francois. He ran with

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<v Speaker 1>that story for so long that I think, like any

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<v Speaker 1>good lie, he just at some point he did start

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<v Speaker 1>believing himself. It was interesting because I do believe that

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<v Speaker 1>when he was under the influence of batstols, he did

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<v Speaker 1>believe the paranoia, the invisible men chasing him. I mean,

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<v Speaker 1>I've seen him starting shooting at the walls from inside

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<v Speaker 1>his house. From twenty thirteen through twenty seventeen, Francois was

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<v Speaker 1>actively filming with McAfee, often at his home in Lexington, Tennessee.

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<v Speaker 1>I would go to the back door, knock at the door,

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<v Speaker 1>and immediately moved myself out of the frame of the

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<v Speaker 1>door against a brick wall, because the chances that he

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<v Speaker 1>would start shooting from inside the house, blazing bullets out

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<v Speaker 1>of his living room or bedroom. Jana's confirmed the story

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<v Speaker 1>and the situation with the shooting in the house. You know,

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<v Speaker 1>if you heard something where it sounded like someone was

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<v Speaker 1>in are at it, you know, that's what he would do,

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<v Speaker 1>you know, fire, no kind of a warning shot, but

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<v Speaker 1>she claims McAfee had reasons to be alarmed. The pimp

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<v Speaker 1>was still around, she says, and still a threat, and

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<v Speaker 1>Janice blames herself for bringing this source of danger into

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<v Speaker 1>McAfee's life. I really felt really guilty, and I felt

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<v Speaker 1>a lot like the things that were happening around him

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<v Speaker 1>and why he felt so unsaved was because of me?

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<v Speaker 1>Was my fault? Is that why you guys divorced? No? No, no,

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<v Speaker 1>it just were just idn't know that there was really

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<v Speaker 1>a why we divorced. We just we just did. Janice

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<v Speaker 1>and McAfee get divorced in twenty nineteen. They would remain

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<v Speaker 1>partners for the rest of his life. There was always

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<v Speaker 1>a need for me to try to reassure him no,

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<v Speaker 1>that I wasn't trying to do him arm. I didn't

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<v Speaker 1>want to do him ARM. So whatever I needed to

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<v Speaker 1>do too to let him know that I was willing

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<v Speaker 1>to do that. Janus didn't go into too many details

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<v Speaker 1>about the divorce, but we know that McAfee was volatile,

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<v Speaker 1>that he had a tendency to push people away. Janus

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<v Speaker 1>managed to hang on to his trust, and my interpretation

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<v Speaker 1>is that the divorce was Janice's way of showing her

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<v Speaker 1>commitment that she would still be there without a claim

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<v Speaker 1>to his money. For Francois, though, the trust that existed

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<v Speaker 1>between him and McAfee that began to wither. Well, I

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<v Speaker 1>think that he started realizing that the projects, it's not

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<v Speaker 1>just a biography that's gonna glorify him and and and

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<v Speaker 1>repeat his side of the story or whatever he says

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<v Speaker 1>at face value. Eventually, the day that probably felt inevitable came,

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<v Speaker 1>McAfee turned on Francois, accusing me being connected to the curtail.

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<v Speaker 1>That's that was part of his m I mean, he

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<v Speaker 1>has He had accused plenty of people in the past

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<v Speaker 1>that they either they had no more use for him

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<v Speaker 1>or they were getting too close for him. That's how

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<v Speaker 1>we would get rid of people. You know why you're

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<v Speaker 1>not talking to to this friend of yours anymore? Oh

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<v Speaker 1>he's my sources just confirmed that he was working with

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<v Speaker 1>the courteils against me. How you know that? Oh, well,

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<v Speaker 1>he just bought a new car. These accusations marked the

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<v Speaker 1>end of their relationship. When we spoke to Francois, his

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<v Speaker 1>documentary on McAfee had been in the works for about

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<v Speaker 1>a decade. Remember, he first started calling news agencies on

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<v Speaker 1>McAfee's behalf in twenty twelve, after Greg Fall's murder in Belize.

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<v Speaker 1>He still plans to release his project. Francois says he

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<v Speaker 1>stopped communicating with McAfee by late twenty seventeen. He then

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<v Speaker 1>watched as McAfee had a sort of career revival by

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<v Speaker 1>tweeting about cryptocurrency. It just went on fire. His following

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<v Speaker 1>started drawing, and the massive crypto community there so that

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<v Speaker 1>he just embraced John. Francois felt like he was seeing

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<v Speaker 1>a whole new community of people taken in by McAfee's

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<v Speaker 1>star power. In spite of his addictions and delusions, McAfee

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<v Speaker 1>would carve out a next chapter as a cryptocurrency prophet.

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<v Speaker 1>That's next. Cryptocurrency became McAfee's major project during the last

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<v Speaker 1>years of his life. Our responsibility, i don't think, is

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<v Speaker 1>to build the ultimate currency, but to understand the power

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<v Speaker 1>that cryptocurrency not developed by governments and institutions, but by people.

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<v Speaker 1>Offers us, for the first time in human history, a

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<v Speaker 1>chance for absolute financial freedom, where your wallet is your bank.

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<v Speaker 1>That's McAfee speaking at a crypto conference in Barcelona in

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<v Speaker 1>twenty nineteen. Cryptocurrencies allow people to anonymously exchange money directly

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<v Speaker 1>with each other. McAfee saw huge potential in this. He

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<v Speaker 1>saw in it a promise of privacy, a world without

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<v Speaker 1>banks or the irs. No one will know what you

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<v Speaker 1>do with your money. Neither should they. It's your fucking money.

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<v Speaker 1>You worked for it. That attitude that the government has

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<v Speaker 1>no business meddling with his money would eventually catch up

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<v Speaker 1>with him. He went all in on crypto in twenty seventeen,

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<v Speaker 1>starting a new money making scheme. A few people who

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<v Speaker 1>were part of his failed presidential campaign went to work

0:16:22.920 --> 0:16:27.960
<v Speaker 1>for him, and they called themselves Team McAfee. They operated

0:16:28.000 --> 0:16:32.200
<v Speaker 1>out of his house in Tennessee. Jimmy Watson, a former

0:16:32.360 --> 0:16:37.520
<v Speaker 1>Navy seal, joined McAfee's security team. He still remembers his

0:16:37.640 --> 0:16:41.400
<v Speaker 1>first day on the job. John McFee steps out of

0:16:41.480 --> 0:16:45.840
<v Speaker 1>this dark corner in the back of the house. You know,

0:16:45.880 --> 0:16:48.640
<v Speaker 1>I'm looking across the kitchen and across this living room,

0:16:48.640 --> 0:16:51.840
<v Speaker 1>and it's all dark and there's bullet holes in the

0:16:51.920 --> 0:16:56.880
<v Speaker 1>wall like around his door. Jimmy could see that the

0:16:56.960 --> 0:17:01.840
<v Speaker 1>compound was dedicated to crypto. Everybody in the house, everyone

0:17:01.920 --> 0:17:04.480
<v Speaker 1>even the mate I think, has a computer screen at

0:17:04.480 --> 0:17:08.639
<v Speaker 1>the laptop and they're trading on this crazy which looks

0:17:08.680 --> 0:17:12.040
<v Speaker 1>like the stock market. To me. I had heard a bitcoin,

0:17:12.200 --> 0:17:15.639
<v Speaker 1>just very very slightly. But I remember John McFee like

0:17:15.800 --> 0:17:19.800
<v Speaker 1>kind of laughing and screaming out out like how much

0:17:19.840 --> 0:17:22.840
<v Speaker 1>money made that day. Jimmy hadn't spent a lot of

0:17:22.880 --> 0:17:26.240
<v Speaker 1>time online. He spent much of his adult life in

0:17:26.280 --> 0:17:29.520
<v Speaker 1>the Navy, and then he went on to work for Blackwater,

0:17:30.080 --> 0:17:34.520
<v Speaker 1>the security contractor that massacred Iraqi civilians in two thousand

0:17:34.600 --> 0:17:38.800
<v Speaker 1>and seven. He said he didn't know anything about digital currency,

0:17:39.400 --> 0:17:42.760
<v Speaker 1>and that McAfee took him under his wing. He taught

0:17:42.800 --> 0:17:45.919
<v Speaker 1>me basically like no other teacher had ever talked to

0:17:45.920 --> 0:17:47.840
<v Speaker 1>me before, and he taught it to be in a

0:17:47.880 --> 0:17:51.840
<v Speaker 1>way that I can understand cryptocurrency. He and McAfee developed

0:17:51.880 --> 0:17:55.199
<v Speaker 1>a close relationship. We look for father figures in our

0:17:55.240 --> 0:17:59.560
<v Speaker 1>life generally psychologically we do. And when we find someone

0:17:59.600 --> 0:18:01.879
<v Speaker 1>in our life said we look up, we look up

0:18:01.880 --> 0:18:04.800
<v Speaker 1>to as a mentor or a father figure. We kind

0:18:04.800 --> 0:18:08.919
<v Speaker 1>of cling onto that individual and did we put him

0:18:08.920 --> 0:18:11.600
<v Speaker 1>on a pedestal. And that's pretty much what happened with

0:18:11.680 --> 0:18:15.280
<v Speaker 1>me and John McFee with less than a year in

0:18:15.320 --> 0:18:19.960
<v Speaker 1>the job, and so his complete surprise, Jimmy says, McAfee

0:18:20.040 --> 0:18:23.040
<v Speaker 1>gave him a new rank and title. He goes, I

0:18:23.200 --> 0:18:26.159
<v Speaker 1>promoted you the CEO two weeks ago on Twitter and

0:18:26.240 --> 0:18:30.120
<v Speaker 1>you didn't see it. You did, and he was like, yeah,

0:18:30.119 --> 0:18:31.800
<v Speaker 1>but I'm not gonna pay you extra. So with that

0:18:31.840 --> 0:18:36.560
<v Speaker 1>scout relationship we had, Jimmy works all day and all night.

0:18:37.000 --> 0:18:40.560
<v Speaker 1>He doesn't stop, and neither does McAfee. We would be

0:18:40.680 --> 0:18:43.960
<v Speaker 1>up all night, sometimes all night, you know, to four

0:18:44.040 --> 0:18:46.760
<v Speaker 1>or five six in the morning, get maybe two hours

0:18:46.760 --> 0:18:50.679
<v Speaker 1>to sleep and wake up. A normal day with him

0:18:50.840 --> 0:18:52.919
<v Speaker 1>would be to go to the Linkuer store, pick up

0:18:52.960 --> 0:18:56.720
<v Speaker 1>a case of Scotch, like a case, sit at his house.

0:18:57.560 --> 0:19:01.080
<v Speaker 1>He'd blare the TV on loud and he'd do all

0:19:01.119 --> 0:19:04.119
<v Speaker 1>his crypto businesses stuff from his phone, and then maybe

0:19:04.119 --> 0:19:08.640
<v Speaker 1>go to Walmart. He lived a pretty mundane life when

0:19:08.720 --> 0:19:12.840
<v Speaker 1>we weren't traveling because he was very paranoid. He didn't

0:19:12.840 --> 0:19:17.560
<v Speaker 1>want to leave the house. Despite the drinking, the paranoia.

0:19:17.640 --> 0:19:21.320
<v Speaker 1>There was a method to the madness. Team McAfee was

0:19:21.400 --> 0:19:27.119
<v Speaker 1>always moving forward looking into emerging cryptocurrencies. My colleague hammah

0:19:27.119 --> 0:19:30.800
<v Speaker 1>Miller covers crypto, so twenty seventeen was a pivotal time

0:19:31.080 --> 0:19:35.160
<v Speaker 1>in crypto. Tons of new coins coming out all the time.

0:19:35.720 --> 0:19:38.600
<v Speaker 1>It would be impossible for anyone to keep track of

0:19:38.640 --> 0:19:42.080
<v Speaker 1>these projects, and McAfee was a bit of a guide

0:19:42.280 --> 0:19:45.640
<v Speaker 1>to them. Jimmy's job was to read up on all

0:19:45.720 --> 0:19:49.600
<v Speaker 1>the new cryptocurrencies and pass on to McAfee the ones

0:19:49.680 --> 0:19:53.760
<v Speaker 1>that Jimmy thought were unique or interesting. Most of them

0:19:53.800 --> 0:19:56.399
<v Speaker 1>were getting ready to sell their new tokens to the

0:19:56.480 --> 0:20:00.800
<v Speaker 1>public for the first time. If McAfee liked one, he

0:20:01.280 --> 0:20:04.160
<v Speaker 1>or his team would often reach out to the project

0:20:04.240 --> 0:20:06.840
<v Speaker 1>and the offer to promote it on his Twitter account.

0:20:07.400 --> 0:20:11.280
<v Speaker 1>But he usually had an ulterior motive. He might buy

0:20:11.440 --> 0:20:16.320
<v Speaker 1>up that coin himself, so after he promotes it, makes

0:20:16.320 --> 0:20:19.040
<v Speaker 1>it his coin of the day, and the price goes up,

0:20:19.520 --> 0:20:22.400
<v Speaker 1>his own stake would rise, and then he could sell

0:20:22.440 --> 0:20:26.320
<v Speaker 1>that cryptocurrency and make a profit. He would also sometimes

0:20:26.440 --> 0:20:31.360
<v Speaker 1>charge these projects to get promoted by him, and so

0:20:31.400 --> 0:20:34.479
<v Speaker 1>he was really building a business out of you know,

0:20:34.920 --> 0:20:39.159
<v Speaker 1>this idea of becoming a crypto influencer back when that

0:20:39.240 --> 0:20:44.280
<v Speaker 1>was a really new phenomenon. Now it's not illegal to

0:20:44.400 --> 0:20:48.240
<v Speaker 1>do a sponsorship or a promotional deal with crypto companies,

0:20:48.880 --> 0:20:52.440
<v Speaker 1>but what could be considered illegal is to not disclose

0:20:52.560 --> 0:20:56.359
<v Speaker 1>that you're being paid to promote that cryptocurrency or security.

0:20:57.760 --> 0:21:02.600
<v Speaker 1>In addition to working with cryptocurrency companies, McAfee also took

0:21:02.760 --> 0:21:06.640
<v Speaker 1>paid speaking gigs at conferences. He was able to draw

0:21:06.760 --> 0:21:10.320
<v Speaker 1>so much attention to cryptocurrency because he was such an

0:21:10.320 --> 0:21:14.679
<v Speaker 1>a vandalist for the movement. His presence on Twitter was

0:21:15.280 --> 0:21:21.080
<v Speaker 1>very high profile, very colorful. In twenty seventeen, he tweeted

0:21:21.080 --> 0:21:23.680
<v Speaker 1>that the price of a bitcoin would jump to five

0:21:23.760 --> 0:21:28.159
<v Speaker 1>hundred thousand dollars within three years, adding if not, I

0:21:28.200 --> 0:21:32.720
<v Speaker 1>will eat my own dick on national television. For the record,

0:21:33.200 --> 0:21:38.560
<v Speaker 1>bitcoin never got anywhere close to that amount, and McAfee

0:21:38.600 --> 0:21:44.199
<v Speaker 1>didn't make good on his promise. The main business of

0:21:44.280 --> 0:21:48.920
<v Speaker 1>Team McAfee was his coin of the day. In twenty seventeen,

0:21:49.240 --> 0:21:53.520
<v Speaker 1>McAfee chose to promote a project called redcoin, a crypto

0:21:53.560 --> 0:21:56.800
<v Speaker 1>token designed to be used as a tip or gratuity

0:21:57.240 --> 0:22:01.399
<v Speaker 1>on social media platforms like Reddit and Twitter. This is

0:22:01.480 --> 0:22:06.240
<v Speaker 1>redcoin's developer, who goes by the pseudonym tech Adept or

0:22:06.640 --> 0:22:10.400
<v Speaker 1>TIA for short, McAfee certainly was on the radar from

0:22:10.440 --> 0:22:14.560
<v Speaker 1>being a bit of a pioneer in the anti virus space.

0:22:15.240 --> 0:22:18.320
<v Speaker 1>He's a computer genius. He's this, you know, but it

0:22:18.320 --> 0:22:21.760
<v Speaker 1>didn't really touch our world at all up until the

0:22:21.880 --> 0:22:25.720
<v Speaker 1>point I checked the data was December twenty fourth, Christmas

0:22:25.760 --> 0:22:29.000
<v Speaker 1>Eve that he actually tweeted out, you know, redcoin, the

0:22:29.160 --> 0:22:33.720
<v Speaker 1>social coin, go for it, and people did. Ta says

0:22:33.840 --> 0:22:38.720
<v Speaker 1>he didn't pay McAfee to promote redcoin. He believes McAfee

0:22:38.720 --> 0:22:42.960
<v Speaker 1>found redcoin on his own. Redcoin isn't the company, it's

0:22:42.960 --> 0:22:46.080
<v Speaker 1>a group of volunteers who dedicate their spare time to it.

0:22:46.680 --> 0:22:50.480
<v Speaker 1>In his tweet, McAfee called red cooin a sleeper and

0:22:50.800 --> 0:22:54.159
<v Speaker 1>the most widely used social network coin in the world.

0:22:54.880 --> 0:22:58.040
<v Speaker 1>It was Christmas Eve and you know, the egg nog

0:22:58.119 --> 0:22:59.880
<v Speaker 1>must have been flowing, and it was a great time.

0:23:00.119 --> 0:23:08.040
<v Speaker 1>But it ended very quickly. Redcoin hit an all time

0:23:08.160 --> 0:23:13.040
<v Speaker 1>high in January twenty eighteen. The crypto data tracker coin

0:23:13.119 --> 0:23:18.520
<v Speaker 1>gecko reported that the price surged sixteen from the month before.

0:23:19.800 --> 0:23:23.439
<v Speaker 1>Redcoin has never broken the record price. It reached after

0:23:23.520 --> 0:23:31.960
<v Speaker 1>McAfee's tweet. Ten months later, members of Team McAfee reached

0:23:32.000 --> 0:23:35.320
<v Speaker 1>out to TA over linked in an email and wanted

0:23:35.359 --> 0:23:39.040
<v Speaker 1>to strike a deal with Redcoin for another promotion from McAfee.

0:23:39.760 --> 0:23:43.200
<v Speaker 1>It was clear they had no memory of the prior promotion,

0:23:43.840 --> 0:23:47.919
<v Speaker 1>which was a major red flag for TA. They mentioned

0:23:47.920 --> 0:23:52.640
<v Speaker 1>a million dollar payment just to be involved, and clearly

0:23:52.720 --> 0:23:57.439
<v Speaker 1>some sort of significant equity in the company, which doesn't

0:23:57.440 --> 0:24:01.119
<v Speaker 1>really exist as such. So I don't even know on

0:24:01.160 --> 0:24:03.959
<v Speaker 1>their team how much communication was going on, but clearly

0:24:04.000 --> 0:24:09.320
<v Speaker 1>they were still looking for customers, partners, people to take

0:24:09.359 --> 0:24:12.199
<v Speaker 1>money from that they could then promote and make a

0:24:12.240 --> 0:24:15.120
<v Speaker 1>bunch of money, and they did. They were they were

0:24:15.240 --> 0:24:23.040
<v Speaker 1>using the crypto community as an ATM. It was November

0:24:23.119 --> 0:24:27.159
<v Speaker 1>twenty eighteen when Team McAfee approached red Coin for that

0:24:27.240 --> 0:24:33.040
<v Speaker 1>paid promotion. Around this time, McAfee and his CEO Jimmy

0:24:33.560 --> 0:24:37.600
<v Speaker 1>had a falling out. I had a sort of a

0:24:37.640 --> 0:24:42.000
<v Speaker 1>mental bakedown, but it was like a spiritual awakening, and

0:24:42.080 --> 0:24:46.119
<v Speaker 1>it was like a vail was lifted off of my eyes,

0:24:46.600 --> 0:24:49.160
<v Speaker 1>as crazy as that sounds, and it's like I could

0:24:49.280 --> 0:24:52.640
<v Speaker 1>see the evil around me and that I just bounced

0:24:53.280 --> 0:24:56.199
<v Speaker 1>and at the cost of pretty much everything to me,

0:24:56.359 --> 0:25:01.680
<v Speaker 1>like I feel utterly used by him. Jimmy says he

0:25:01.800 --> 0:25:05.840
<v Speaker 1>hadn't talked to McAfee since late twenty eighteen or early

0:25:05.920 --> 0:25:11.040
<v Speaker 1>twenty nineteen, but he remembered how he felt during that conversation.

0:25:11.520 --> 0:25:14.080
<v Speaker 1>I think he just said, you've played the full Jimmy

0:25:14.480 --> 0:25:18.720
<v Speaker 1>my son basically like I won. And that was really

0:25:18.800 --> 0:25:21.639
<v Speaker 1>hard for me because I had I felt like he

0:25:21.680 --> 0:25:24.800
<v Speaker 1>was like a dad to me, a father, And that's

0:25:24.800 --> 0:25:27.600
<v Speaker 1>what you get for thinking those kind of things in life,

0:25:27.960 --> 0:25:30.720
<v Speaker 1>you know. And it was a huge lesson for me

0:25:30.760 --> 0:25:34.720
<v Speaker 1>to learn. But at this moment, in the fall of

0:25:34.760 --> 0:25:39.359
<v Speaker 1>twenty eighteen, McAfee has bigger problems than Jimmy all the

0:25:39.440 --> 0:25:44.120
<v Speaker 1>Red coin deal. McAfee gets word that the federal government

0:25:44.320 --> 0:25:48.840
<v Speaker 1>is planning to press charges against him. Janie tells Our

0:25:48.920 --> 0:25:53.480
<v Speaker 1>contributing reporter Matthew Bremner that she and McAfee make plans

0:25:53.520 --> 0:25:57.960
<v Speaker 1>to leave the country. John at gunn he gotten a

0:25:58.080 --> 0:26:01.680
<v Speaker 1>letter from one of his attorneys, and they had said

0:26:01.720 --> 0:26:04.320
<v Speaker 1>that they had been called to give testimony to a

0:26:04.400 --> 0:26:10.360
<v Speaker 1>grand jury. He then gotten word that he himself, myself,

0:26:10.440 --> 0:26:14.720
<v Speaker 1>and four other people were named in this grand jury. Indictment.

0:26:14.760 --> 0:26:17.439
<v Speaker 1>It was supposed to We weren't supposed to know about it,

0:26:17.480 --> 0:26:21.160
<v Speaker 1>but obviously John you know, has his ways to get

0:26:21.200 --> 0:26:24.399
<v Speaker 1>information until he found out about that in November, until

0:26:24.440 --> 0:26:27.520
<v Speaker 1>we ended up leaving on January of the next year,

0:26:27.640 --> 0:26:32.080
<v Speaker 1>January twenty nineteen, go directly to space. No no, no.

0:26:32.119 --> 0:26:36.800
<v Speaker 1>We went to the Bahamas. We drove from Cattara's Island.

0:26:36.960 --> 0:26:40.560
<v Speaker 1>We drove from there down to Miami, and then from

0:26:40.560 --> 0:26:46.560
<v Speaker 1>Miami we took our boat, the Freedom Boat. We were

0:26:46.680 --> 0:26:51.160
<v Speaker 1>unable to confirm this chain of events with McAfee's attorney. However,

0:26:51.680 --> 0:26:54.800
<v Speaker 1>we spoke to a legal expert who told us that

0:26:54.880 --> 0:26:59.320
<v Speaker 1>it's unusual for attorneys to give grand jury testimony during

0:26:59.400 --> 0:27:04.439
<v Speaker 1>a federal investigation. That said, it's very common for people

0:27:04.600 --> 0:27:09.359
<v Speaker 1>under investigation for white collar crimes to know they're being investigated.

0:27:10.280 --> 0:27:15.200
<v Speaker 1>What McAfee did that was uncommon was flee Today January

0:27:15.200 --> 0:27:19.480
<v Speaker 1>twenty seconds, the IRS has convened a grand jury in

0:27:19.520 --> 0:27:25.080
<v Speaker 1>the state of Tennessee to charge myself, my wife, Missus McAfee,

0:27:25.680 --> 0:27:33.240
<v Speaker 1>four of my campaign workers with unspecified IRS crimes of

0:27:33.359 --> 0:27:37.080
<v Speaker 1>a felonious nature. They want to silence me. I will

0:27:37.119 --> 0:27:42.480
<v Speaker 1>not allow that. I am running my campaign in exile

0:27:42.960 --> 0:27:48.560
<v Speaker 1>on this boat. If you didn't catch that, McAfee attempted

0:27:48.560 --> 0:27:52.639
<v Speaker 1>to run for president again as the Libertarian candidate in

0:27:52.680 --> 0:27:57.520
<v Speaker 1>the twenty twenty election. While he was at c he

0:27:57.600 --> 0:28:00.720
<v Speaker 1>was still very active online and closely followed by the

0:28:00.760 --> 0:28:05.680
<v Speaker 1>crypto community. He insisted he would continue to campaign with

0:28:05.760 --> 0:28:09.159
<v Speaker 1>his partner Janus by his signed even as he was

0:28:09.240 --> 0:28:13.159
<v Speaker 1>being investigated. I will not allow them to imprison me

0:28:13.320 --> 0:28:17.199
<v Speaker 1>and shut my voice down. While he was on the lamp,

0:28:17.600 --> 0:28:20.280
<v Speaker 1>he made this recording that was played to an audience

0:28:20.560 --> 0:28:25.919
<v Speaker 1>on the crypto themed cruise. Hello everyone, I'm John McAfee.

0:28:26.240 --> 0:28:29.720
<v Speaker 1>I'm very sorry I cannot be with you enjoying this

0:28:30.240 --> 0:28:33.360
<v Speaker 1>wonderful cruise that you're on. The reason I'm not with

0:28:33.440 --> 0:28:36.879
<v Speaker 1>you is had I attempted to go, I would have

0:28:36.920 --> 0:28:41.280
<v Speaker 1>been picked up by interbalm and carted off back to

0:28:41.360 --> 0:28:46.440
<v Speaker 1>America to face charges for tax evasion. It is true.

0:28:46.640 --> 0:28:49.960
<v Speaker 1>I have not paid taxes in eight years. I have

0:28:50.040 --> 0:28:53.720
<v Speaker 1>not filed taxes in eight years. I will not file

0:28:53.800 --> 0:29:00.680
<v Speaker 1>taxes again. Jeff Albert is a part at the law

0:29:00.720 --> 0:29:04.960
<v Speaker 1>firm Prior Cashman and a former federal prosecutor with the

0:29:05.000 --> 0:29:09.280
<v Speaker 1>Southern District of New York. Jeff specializes in white color crime.

0:29:09.680 --> 0:29:13.000
<v Speaker 1>He said that McAfee's actions fit the profile of a

0:29:13.080 --> 0:29:15.880
<v Speaker 1>type of crime known as a pump and dump scheme

0:29:16.000 --> 0:29:19.959
<v Speaker 1>involving securities. You take a security that is selling at

0:29:19.960 --> 0:29:22.640
<v Speaker 1>a fairly low price, You buy a bunch of it

0:29:22.680 --> 0:29:25.080
<v Speaker 1>at that low price. Then you make a bunch of

0:29:25.080 --> 0:29:28.840
<v Speaker 1>extravagant claims publicly about the security and how it's likely

0:29:28.880 --> 0:29:31.640
<v Speaker 1>to go up in value. The value then goes up,

0:29:31.760 --> 0:29:33.880
<v Speaker 1>and then you sell all of those securities that you

0:29:33.920 --> 0:29:37.400
<v Speaker 1>bought and make a tidy little profit. Jeff says the

0:29:37.480 --> 0:29:41.320
<v Speaker 1>McAfee name did some heavy lifting in this scheme. Don

0:29:41.400 --> 0:29:45.800
<v Speaker 1>McAfee was well known as somebody who had created antivirus software,

0:29:46.200 --> 0:29:50.240
<v Speaker 1>presumably was very smart, and people viewed him as somebody

0:29:50.240 --> 0:29:52.840
<v Speaker 1>that they could rely on to go in and look

0:29:52.880 --> 0:29:56.200
<v Speaker 1>at a computer science related product and assess whether or

0:29:56.240 --> 0:29:59.800
<v Speaker 1>not it was really valuable. Right now where in a

0:30:00.080 --> 0:30:04.160
<v Speaker 1>legal gray area. Governments have been trying to figure out

0:30:04.240 --> 0:30:08.720
<v Speaker 1>how to regulate cryptocurrency. Many of them wanted to treat

0:30:08.720 --> 0:30:12.160
<v Speaker 1>it more like a stock. That way, they could use

0:30:12.240 --> 0:30:16.440
<v Speaker 1>existing rules to discourage people from manipulating the market or

0:30:16.440 --> 0:30:22.160
<v Speaker 1>trying to gain unfair advantages to make money. John McAfee

0:30:22.200 --> 0:30:27.520
<v Speaker 1>became one of their first high profile targets. On October fifth,

0:30:27.600 --> 0:30:32.600
<v Speaker 1>twenty twenty, the SEC charged McAfee and Jimmy Watson with

0:30:32.800 --> 0:30:38.920
<v Speaker 1>fraudulently promoting cryptocurrencies to McAfee's Twitter followers without disclosing they

0:30:38.960 --> 0:30:43.080
<v Speaker 1>were being paid to do so. Federal prosecutors at the

0:30:43.200 --> 0:30:47.880
<v Speaker 1>Justice Department came out with similar charges in twenty twenty one.

0:30:48.600 --> 0:30:52.440
<v Speaker 1>In total, McAfee and Jimmy were accused of committing a

0:30:52.600 --> 0:30:59.400
<v Speaker 1>thirteen million dollar fraud. After he left McAfee, Jimmy lived abroad.

0:31:00.040 --> 0:31:04.200
<v Speaker 1>He kept busy doing contract work. He never crossed paths

0:31:04.320 --> 0:31:10.040
<v Speaker 1>with his former boss again. Jimmy declines to go into

0:31:10.080 --> 0:31:14.200
<v Speaker 1>detail about why he moved overseas, and he didn't have

0:31:14.320 --> 0:31:18.000
<v Speaker 1>a good explanation for why he did what he did. Next,

0:31:18.960 --> 0:31:22.520
<v Speaker 1>which is with a federal indictment hanging over his head,

0:31:23.120 --> 0:31:26.880
<v Speaker 1>he goes back to the US. In March twenty twenty one,

0:31:27.160 --> 0:31:31.320
<v Speaker 1>he travels to Texas to see family and renew his passport.

0:31:31.680 --> 0:31:34.360
<v Speaker 1>I was with my mom outside at a coffee shop.

0:31:34.400 --> 0:31:36.120
<v Speaker 1>A little did I know the FBI had been watching

0:31:36.120 --> 0:31:39.680
<v Speaker 1>my house and following me. These are two SUVs just

0:31:39.920 --> 0:31:43.720
<v Speaker 1>pulled up really fast, guns in my face, fingers on sugar,

0:31:44.040 --> 0:31:47.440
<v Speaker 1>you know, you know, yelling at you get on the ground.

0:31:47.560 --> 0:31:49.960
<v Speaker 1>I'm only conserved with my mom. I was a mom,

0:31:50.200 --> 0:31:53.880
<v Speaker 1>Get mom back up. This is bad. That was it.

0:31:55.480 --> 0:32:01.320
<v Speaker 1>They rescued me, you know. Jimmy's spent five days in

0:32:01.400 --> 0:32:05.920
<v Speaker 1>a federal penitentiary before being released under a ten million

0:32:05.920 --> 0:32:11.560
<v Speaker 1>dollar bail and house arrest. He pleaded not guilty. Just

0:32:11.840 --> 0:32:15.520
<v Speaker 1>over a year later, a federal judge ordered Jimmy to

0:32:15.600 --> 0:32:19.680
<v Speaker 1>pay almost four hundred thousand dollars in fines and banned

0:32:19.800 --> 0:32:25.160
<v Speaker 1>him from buying and selling any digital assets security. It

0:32:25.240 --> 0:32:28.120
<v Speaker 1>was near the end of the road from McAfee as well.

0:32:29.240 --> 0:32:32.760
<v Speaker 1>He'd fled the United States in haste in twenty nineteen

0:32:33.720 --> 0:32:37.320
<v Speaker 1>after years of saying he was being chased. He really

0:32:37.560 --> 0:32:42.000
<v Speaker 1>was wanted by the US government on several charges, and

0:32:42.120 --> 0:32:45.320
<v Speaker 1>he would spend the next few years flitting from one

0:32:45.440 --> 0:32:51.440
<v Speaker 1>foreign city to another, attempting to disguise his whereabouts. And Jimmy,

0:32:51.760 --> 0:32:55.880
<v Speaker 1>who'd spent so much time traveling with McAfee before their split,

0:32:56.600 --> 0:32:59.520
<v Speaker 1>he had a strong sense of what McAfee was up to.

0:33:00.160 --> 0:33:04.040
<v Speaker 1>We did go to Spain, he hung out with Russians.

0:33:04.080 --> 0:33:08.600
<v Speaker 1>They're very, very powerful, successful Russians. When I heard that

0:33:08.680 --> 0:33:11.880
<v Speaker 1>he was arrested in Spain, I knew that he was.

0:33:12.400 --> 0:33:16.479
<v Speaker 1>He had been with them, and these are very powerful man.

0:33:16.520 --> 0:33:18.120
<v Speaker 1>I don't want to get too far into it, just

0:33:18.200 --> 0:33:25.680
<v Speaker 1>to protect myself. McAfee's last stand, that's next time on Foundering,

0:33:26.280 --> 0:33:35.240
<v Speaker 1>The John mccafee story. Foundering is hosted by me Jamie

0:33:35.360 --> 0:33:40.000
<v Speaker 1>Tera Bay Sean When is our executive producer. Hannah Miller

0:33:40.080 --> 0:33:44.960
<v Speaker 1>and Matthew Bremner contributed reporting to this episode special thanks

0:33:44.960 --> 0:33:48.720
<v Speaker 1>to Young Young and Eileena Pen for help with production.

0:33:49.560 --> 0:33:53.600
<v Speaker 1>Molly Nugent is our associate producer. Sharif Josef is our

0:33:53.640 --> 0:33:59.640
<v Speaker 1>audio engineer and editorial assistant. Mark Million and Vandermay, Molly

0:33:59.680 --> 0:34:04.240
<v Speaker 1>should and Andy Martin are our story editors. Be sure

0:34:04.280 --> 0:34:08.160
<v Speaker 1>to subscribe and if you like our show, leave a review.

0:34:08.920 --> 0:34:13.080
<v Speaker 1>Most importantly, tell your friends see you next time.