The Securities and Exchange Commission (SEC) has charged a brother and sister with duping thousands of victims out of over $124 million in a well-executed crypto scam. Based on the SEC complaint, from June 2017, John and JonAtina Barksdale have been developing and selling a digital token called ‘Ormeus Coin’ to unsuspecting investors on multiple crypto trading platforms.
Furthermore, for nearly a year, the siblings, using a multi-level marketing business known as Ormeus Global, offered and sold various subscription packages that included Ormeus Coin and an investment in a cryptocurrency trading program.
To attract investors to the crypto scam, John Barksdale held roadshows throughout the world while he and his sister led the production of social media posts, press releases, YouTube videos, and many other promotional materials.
The complaint claims that at these events, in the produced materials, and now on Ormeus Coin’s website, the defendants falsely said that the Ormeus Coin was supported by one of the biggest crypto mining operations in the world, although they abandoned their mining operations in 2019 after generating less than $3 million in revenue.
Buy Crypto NowFurthermore, the complaint also alleges that the Barksdale siblings manipulated the Ormeus Coin’s price and then misused millions of dollars of investor funds for their personal expenses. The associate director in the SEC’s Division of Enforcement, Melissa Hodgman, said:
“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.”
