Brothers Have Been Arrested In Connection With Such A $124 Million Fraud Allegations Involving A Mining Coin

• The Securities and Exchange Commission (SEC) charged John Albert Loar Barksdale and his sister JonAtina (Tina) Barksdale with breaking federal securities laws and cheating at least 12,000 retail investors out of more than $124 million on Tuesday.

• The Securities and Exchange Commission (SEC) has expressed concern regarding common cryptocurrency advertising methods and if they violate securities fraud. According to reports released on Thursday, the Commission is presently targeting nonfungible tokens (NFT) used for fundraising purposes like traditional securities.

• The mining enterprise never attained a value close to $250 million and never produced sales surpassing one million dollars in any month, according to the DOJ. John is still listed as an adviser on the 11 Coin and Ormeus Cash websites, having written a blog article on February 26, 2018 titled Why Taking Calculated Risks In Life Is Important.

For their alleged activities in the Ormeus Coin ICO, the brother and sister duo will face accusations of wire fraud, securities fraud, and conspiracy. The US government has brought criminal charges against two siblings for allegedly defrauding investors in the Ormeus Coin scheme.

Violating Federal Securities Laws As Well As Taking Over $124 Million Out Of At Nearly 12,000 Retail Investors

The Securities and Exchange Commission (SEC) charged John Albert Loar Barksdale and his sister JonAtina (Tina) Barksdale with breaking federal securities laws and cheating at least 12,000 retail investors out of more than $124 million on Tuesday. The DOJ apprehended John in a foreign country and charged him with wire fraud, securities fraud, and conspiracy. Each of the Barksdale brothers is an American citizen. According to Reuters, John, 41, was residing in Thailand, and JonAtina, 45, was in Hong Kong. There has been 2 Ormeus Coin (ORME) cryptocurrency offerings beginning around 2017. (ICOs). 

The Barksdales lied about the size, value, and supposed profitability of Ormeus Coin’s cryptocurrency mining assets, according to the SEC complaint. ORME is a BEP-20 and ERC-20 token that can be found on Ethereum and BNB Chain. While both brothers helped with both the project’s social media comments and videos, only John attended promotional events and seminars to market it. Melissa Hodgman, associate director of the SEC’s Division of Enforcement, compared John to a snake-oil salesman. Both siblings employed social media, promotional websites, and in-person roadshows, according to her.

 Hodgman also confirmed the SEC’s stance on cryptocurrency scammers, saying: No matter what label the promoters use to their products, we will continue to aggressively investigate those who offer securities in schemes to deceive the investing public. Both the SEC and the DOJ are accusing the Barksdales of making false statements to investors regarding the health of the Ormeus mining business. According to the Oremus Coin website, mining for the coin began in November 2017 with actual Bitcoin (BTC), Litecoin (LTC), and Dash (DASH) mining machines. The Barksdales stated that the project had put $250 million into the mining operation that supported ORME and that it was bringing in $5 million per month. The project is accused of deceiving investors by claiming that its vault wallet was worth more than $190 million as of November last year. 

The display, however, was purportedly created using a second website that displayed the value of an unconnected wallet. The project’s true wallets, according to the SEC, were worth less than $500,000. The mining enterprise never attained a value close to $250 million and never produced sales surpassing one million dollars in any month, according to the DOJ. John is still listed as an adviser on the 11 Coin and Ormeus Cash websites, has written a blog article on February 26, 2018, titled Why Taking Calculated Risks In Life Is Important. While the Barksdales are being detained in custody, a court date will be scheduled.

A Larger Range Of Evidence

As per a recent decision even by the 11th Circuit Court of Appeals, the SEC may have had more power in this case because prosecutors can now use a broader variety of data. On Feb. 18, the Supreme Court overruled a lower court order prohibiting prosecutors from utilizing footage inside the BitConnect founders’ securities fraud lawsuit.

The Securities and Exchange Commission (SEC) has expressed concern about common crypto advertising methods and if these constitute financial crimes. According to reports released on Thursday, the Commission is presently targeting nonfungible tokens (NFT) used for fundraising purposes like traditional securities.

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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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