Foundering: McAfee Part 5 – The Descent
Bloomberg | Released March 16, 2023

Overview

In "McAfee Part 5: The Descent," Bloomberg’s award-winning podcast Foundering delves into the tumultuous final years of John McAfee, the enigmatic tech entrepreneur known for his antivirus software and controversial life. This episode explores McAfee's deepening paranoia, his foray into the cryptocurrency world, legal battles, and the deterioration of his personal relationships. Through interviews with key figures like filmmaker François Garcia, McAfee's ex-partner Janice McAfee, and former associates, the episode paints a comprehensive portrait of a man grappling with addiction, delusion, and the relentless pursuit of financial freedom.

1. Attempts to Document McAfee's Life

Francois Garcia, a Canadian filmmaker, initiated efforts to create a documentary on McAfee shortly after the mysterious death of McAfee’s neighbor in Belize in late 2012. Garcia’s journey to secure meetings with McAfee was fraught with challenges due to McAfee's deteriorating mental state.

• McAfee’s Paranoia and Substance Abuse:
  “We have a studio involved. We're talking to several high profile directors as well. So I told John, I want to set up a meeting. You guys can chat.”
  (00:23)
  McAfee was reportedly using bath salts, a synthetic drug inducing severe paranoia and hallucinations, making interactions with potential collaborators increasingly difficult.

2. The Boston Incident

McAfee's choice of Boston as a meeting location stemmed from his belief that being among Irish people would offer safety. However, his paranoia quickly spiraled during the meeting.

• McAfee’s Heightened Fear of Cartels:
  “I have to leave immediately. The hotel is surrounded by cartels all over the lobby here, looking at us.”
  (01:47)
  His fear extended to perceiving Microsoft employees as cartel operatives, showcasing the extent of his delusions.

• Escalation in Behavior:
  “It's like a state of paranoia. There's guns everywhere. Loaded guns.”
  (03:00)
  McAfee's erratic behavior, including gun possession and paranoia about cartel threats, underscored his unstable mental state.

3. Relationship with Janice McAfee

Janice McAfee played a pivotal role in John’s life, often acting as his anchor amid his escalating paranoia.

• Janice’s Perspective on the Threats:
  “They knew that we were together and they wanted to have me be sort of their inside man, you know, giving them information.”
  (09:19)
  Janice corroborated John’s fears to some extent, linking his paranoia to threats from her past as a sex worker.

• Impact on Their Marriage:
  “I willingly felt really guilty, and I felt a lot like the things that were happening around him and why he felt so unsafe was because of me, was my fault.”
  (11:29)
  The strain of constant threats and John's volatile behavior led to their divorce in 2019, though they remained partners until his death.

4. McAfee’s Foray into Cryptocurrency

Amid personal turmoil, McAfee found a new purpose in the burgeoning world of cryptocurrency, leveraging his fame to influence and profit from digital currencies.

• Embracing Cryptocurrency:
  “Our responsibility, I don't think, is to build the ultimate currency, but to understand the power. That cryptocurrency... offers us, for the first time in human history, a chance for absolute financial freedom.”
  (15:08)
  McAfee viewed cryptocurrency as a means to achieve financial independence, free from governmental interference.

• Team McAfee and Crypto Promotion:
  “He might buy up that coin himself. So after he promotes it, makes it his coin of the day, and the price goes up, his own stake would rise, and then he could sell that cryptocurrency and make a profit.”
  (20:10)
  Through his team, McAfee promoted various cryptocurrencies, often engaging in "pump and dump" schemes that manipulated market prices for personal gain.

5. Legal Troubles and Paranoia Intensifies

McAfee's aggressive promotion of cryptocurrencies without disclosure led to significant legal challenges.

• Federal Charges and Flight:
  “Today, January 22nd, the IRS has convened a grand jury in the state of Tennessee to charge myself, my wife, Mrs. McAfee, four of my campaign work with unspecified IRS crimes of a felonious nature.”
  (27:14)
  Facing IRS accusations of tax evasion, McAfee fled the United States in January 2019, further entrenching his life on the run.

• Jimmy Watson’s Account:
  “I was with my mom outside at a coffee shop... These two SUVs just pulled up really fast, guns in my face...”
  (31:31)
  Former McAfee associate Jimmy Watson detailed his abrupt arrest, highlighting the pervasive fear and scrutiny surrounding McAfee’s operations.

6. The Collapse of Team McAfee

Internal conflicts and legal pressures led to the disintegration of McAfee’s inner circle.

• Jimmy Watson’s Breakdown:
  “I felt utterly used by him... that’s what you get for thinking those kind of things in life.”
  (25:11)
  Watson recounted his mental breakdown and disillusionment with McAfee, leading to his departure and eventual legal consequences.

• Regulatory Crackdown:
  “The SEC charged McAfee and Jimmy Watson with fraudulently promoting cryptocurrencies... McAfee was well known as somebody that they could rely on to go in and look at a computer science related product and assess whether or not it was really valuable.”
  (29:58)
  Regulatory bodies targeted McAfee for his deceptive promotion practices, culminating in a $13 million fraud charge.

7. Final Days and Legacy

As McAfee continued his campaign and evaded authorities, his legacy became a mix of technological innovation and cautionary tales of unchecked ambition.

• McAfee’s Announcement from Exile:
  “I have not paid taxes in eight years. I have not filed taxes in eight years. I will not file taxes again.”
  (28:23)
  From his boat, McAfee declared his defiance against US authorities, embodying his relentless pursuit of personal freedom.

• Impact on the Crypto Community:
  McAfee’s actions left a lasting imprint on the cryptocurrency world, blending innovation with ethical controversies.

Conclusion

"McAfee Part 5: The Descent" offers a compelling exploration of John McAfee's final chapters, intertwining personal struggles with broader implications in the tech and cryptocurrency industries. Through firsthand accounts and expert insights, the episode underscores the complex interplay between genius and madness, ambition and downfall. McAfee's story serves as a stark reminder of the perils that accompany unbridled power and the pursuit of financial autonomy.

Notable Quotes

• “It’s like a state of paranoia. There’s guns everywhere. Loaded guns.”
  – John McAfee [03:00]

• “We look for father figures in our life... and then we put them on a pedestal.”
  – Jimmy Watson [17:53]

• “I taught me basically like no other teacher had ever talked to me before. And he taught it to me in a way that I could understand. And Cryptocurrency.”
  – Jimmy Watson [17:42]

• “John McAfee was someone that they could rely on to go in and look at a computer science related product and assess whether or not it was really valuable.”
  – Jeff Albert [29:36]

Key Contributors

• Host: Jamie Tarabay
• Executive Producer: Sean Wen
• Reporting: Hannah Miller, Matthew Bramner
• Production Assistance: Yang Yang, Aileena Peng
• Associate Producer: Molly Nugent
• Audio Engineering: Sharif Youssef
• Story Editors: Mark Million, Ann Vandermee, Molly Schutz, Andy Martin

If you found this summary insightful, be sure to subscribe to Foundering, leave a review, and share it with your friends.