The United States Securities and Exchange Commission (SEC) has charged siblings John and JonAtina Barksdale with fraud for misleading investors through false statements in a cryptocurrency scheme. The SEC has filed charges against the couple for allegedly “defrauding thousands of retail investors out of more than $124 million (approximately Rs 950) through two linked unregistered fraudulent securities services.” regarding a digital token called ‘Ormeus Coin.'” The SEC announced Ormeus Coin through cryptocurrency exchanges and promoted it via YouTube and roadshows around the world.
The complaint Allegedly that the siblings had been selling ‘Ormeus Coin’ to investors since June 2017, when a multi-level marketing business called Ormeus Global was also started, which continued to operate until April 2017. 2018. Ormeus Global offered and sold subscriptions that “include Ormeus Coin and an investment in a cryptocurrency trading platform.”
Both have also been accused of “falsification” for claiming that the ‘Ormeus Coin’ was backed by a “$250 million (approximately 1,915 crore) cryptocurrency mining operation”, obtained from 5.4 million dollars (approximately 41.5 crore) to $8 million (approximately Rs. 61 crore) in monthly sales. However, this sibling’s mining ended in 2019 and generated only $3 million in total (about Rs. 23 crore).
John Barksdale is also accused of organizing roadshows “around the world” to promote the couple’s services. Tina Barksdale allegedly promoted the services through YouTube, press releases, social media posts and “other promotional materials”.
The complaint also states that the defendants attempted to “defend [mining operation] fictitious “by showing” an unrelated third-party wallet with assets of more than $190 million (approximately 1,455 crore) as of November 2021″, while the actual Ormeus wallet contained less than $500,000 ( around Rs. 4 crore) There were also claims of price manipulation and misuse of investor funds for “personal expenses.”
“We allege that Barksdales operate as modern-day snake oil sellers, using social media, promotional websites and face-to-face referrals to mislead retail investors because their personal interests,” Melissa Hodgman, deputy director of the SEC’s Division of Enforcement, said in the statement.
The suit was filed in the United States District Court for the Southern District of New York and accuses Barksdales of violating federal securities laws.
The Attorney General’s Office for the Southern District of New York has also filed separate criminal charges against John Barksdale.
“As alleged, John Barksdale carried out a scheme to sell Ormeus Coin cryptocurrency to investors around the world through a fraudulent website,” the office said in a statement. declare.
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