Shared from brobible.com.
iStockphoto
- A brother and sister, John and Tina Barksdale, have been charged with ripping off cryptocurrency investors.
- They allegedly defrauded their investors out of $124 million utilizing their Ormeus Coin cryptocurrency.
- Read more news about cryptocurrency here.
With very little in the way of actual regulation, there is no shortage of stories of crimes being committed in the world of cryptocurrency. The dollar amounts involved in many of these cases is staggering.
Billions of dollars have been fraudulently gained by ne’er-do-wells with their minds set on making a fast buck.
Related: How A $500 Walmart Gift Card Helped Feds Catch Thieves Involved In $4.5 Billion Bitcoin Heist
Heck, even Matt Damon’s favorite cryptocurrency company was the victim of a $15 million heist.
The latest significant scam perpetrated in the cryptocurrency world was the creation of a brother and sister duo named John and Tina Barksdale using their Ormeus Coin.
According to the Department of Justice, the Barksdale siblings were charged by the United States Attorney for the Southern District of New York with ripping off their crypto investors to the tune of $124 million.
The brother-sister duo allegedly used their Ormeus Coin to defraud crypto investors
John Albert Loar Barksdale was arrested abroad on conspiracy, securities fraud, and wire fraud charges.
JonAtina (Tina) Barksdale, according to the Securities and Exchange Commission, was charged with her brother for violating the federal securities laws and seeks injunctive relief, disgorgement plus interest, and civil penalties.
According to the SEC’s complaint, from June 2017 through the present, the Barksdales offered and sold Ormeus Coin to investors on crypto trading platforms. In addition, from June 2017 to April 2018, through a multi-level marketing business called Ormeus Global, the Barksdales offered and sold subscription packages that included Ormeus Coin and an investment in a crypto trading program. As alleged, to promote the offerings, John Barksdale held roadshows around the world while he and his sister, Tina, led the production of social media posts, YouTube videos, press releases, and other promotional materials. The complaint alleges that at the events, in the produced materials, and currently on Ormeus Coin’s website, the defendants falsely claimed that Ormeus Coin was supported by one of the largest crypto mining operations in the world, even though they abandoned their mining operations in 2019 after generating less than $3 million in total mining revenue. As alleged, in many of these investor communications, the defendants falsely stated that Ormeus Coin had a $250 million crypto mining operation and was producing $5.4 million to $8 million per month in mining revenues.
The complaint added that they claimed Ormeus Coin held more than $190 million in assets as of November 2021, when it was really worth less than $500,000.
Related: Keanu Reeves Talks About The Metaverse And Cryptocurrency, Laughs At The Concept Of NFTs
“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,” said Melissa Hodgman, Associate Director in the SEC’s Division of Enforcement. “We will continue to vigorously pursue persons who sell securities in schemes to defraud the investing public no matter what label the promoters apply to their products.”
U.S. Attorney Damian Williams said, “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. Among other allegedly false statements he made, Barksdale lied that Ormeus Coin was secured by a $250 million cryptocurrency mining operation that had revenues exceeding $5 million per month, when in fact Ormeus’s mining operations never approached such a value or had such revenues. Together with our law enforcement partners here and abroad, we will work tirelessly to prosecute those who commit frauds against the public in connection with the sale of cryptocurrencies.”
Images and Article from brobible.com