SEC Has Charged ‘Ormeus Coin’ Founders in $124M Crypto Fraud

Ormeus Coin is a scam

According to SEC’s release, John and JonAtina Barksdale have been marketing a digital token dubbed “Ormeus Coin” to investors since June 2017.

Furthermore, for nearly a year, the siblings advertised and sold subscription packages that included Ormeus Coin and an investment in a crypto trading program through a multi-level marketing company named Ormeus Global.

John Barksdale attended roadshows all around the world to recruit investors, while he and his sister managed the production of social media postings, YouTube videos, news releases, and other promotional materials.

“As alleged, John Barksdale perpetrated a scheme to sell the cryptocurrency Ormeus Coin to investors around the world through a web of lies, which he spread through in-person roadshows, social media and even a jumbotron in Times Square,” U.S. attorney Damian Williams said in a U.S. Department of Justice’s press release. 

The SEC complaint claims that the defendants falsely claimed that Ormeus Coin was supported by one of the world’s largest crypto mining operations at the events, in the produced materials, and on Ormeus Coin’s website, despite the fact that their mining operations were abandoned in 2019 after generating less than $3 million in revenue.

The Barksdales are also accused of manipulating the token price and misusing millions of dollars in investor money for personal needs.

“We allege that the Barksdales acted as modern-day snake-oil salesmen, using social media, promotional websites, and in-person roadshows to mislead retail investors for their own personal benefit,” says Melissa Hodgman, associate director in the SEC’s Division of Enforcement.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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