The SEC claims that the siblings promoted Ormeus on YouTube, at global roadshows, and on cryptocurrency exchanges.
Massive Crypto Fraud
Fraudulent Investment
John allegedly misled investors about Ormeus Coin’s value and profitability in court documents filed in Manhattan. He claimed the coin was backed by a $250 million mining operation earning over $5 million monthly, per the DOJ.
However, mining ceased in 2019, leaving investors distraught. Accusations suggest the couple fabricated wallets to disguise the lack of Ormeus mining activity.
BTC total market cap at $804.18 billion in the daily chart | Source: TradingView.com
The actual wallets used in the project were “worth less than $500,000,” according to the SEC.
The lawyers for the Barksdales could only be found after a while.
Taking Out The Bad Guys
“Regardless of the label that the product promoters affix to their offerings, we will persistently pursue individuals who sell securities in schemes designed to deceive the investing public,” stated Hodgman.
The Justice Department has arrested John, who faces charges of conspiracy, wire fraud, and securities fraud, with a potential sentence of up to 65 years in prison.
According to the SEC, Tina, 45, lived in Hong Kong, and John, 41, was a resident of Thailand. Both defendants are citizens of the United States.
SEC is becoming concerned.
The SEC has expressed scepticism regarding whether the prevalent promotional practices in the cryptocurrency sector amount to securities fraud.
Last week, emerging reports indicated that the SEC has reportedly set its sights on NFTs used for fundraising purposes, intending to treat them “like ordinary stocks.”
As of this writing, Bitcoin (BTC) on Coingecko was $42,324.87.
