Early last week, authorities in the United States filed criminal and civil charges against a crypto executive and his sister for allegedly defrauding investors out of millions of dollars with the help of a little token called Ormeus Coin.
Ormeus Coin – A Tool for Evil?
John Barksdale and his sibling JonAtina are accused of lying about the profitability and value of Ormeus Coin and its mining assets. Allegedly, the asset was backed by more than $250 million through a mining operation that garnered as much as $5 million in monthly profits, though members of the U.S. Justice Department say this wasn’t true. The charges were filed against the pair in a Manhattan federal court last Tuesday.
Both siblings have also been charged by the Securities and Exchange Commission (SEC). The agency explained in a statement that both individuals – in selling Ormeus Coin to investors – ultimately conducted illegal sales of unregistered securities. The currency was first introduced five years ago and garnered more than $120 million through investments from more than 20,000 individual traders. The currency was promoted through social media, roadshows, and even a Times Square jumbotron.
Sadly, none of the money the pair earned is believed to have gone into any company or was returned to investors in the form of profit. Instead, the brother and sister team are accused of taking the funds and spending them on travel, properties, and personal expenses. Melissa Hodgman – associate director of the SEC enforcement division – explained that the pair acted like “modern-day snake-oil salesmen.”
At the time of writing, John Barksdale – if found guilty – faces a prison sentence of roughly 65 years. He has been charged with several crimes including conspiracy, wire fraud, and securities fraud. Barksdale is 41 years of age and allegedly lived in Thailand for some time, while his sister – age 45 – is reported to have lived in Hong Kong.
Crime Is Still Running Rampant
While crypto has come a long way in recent years, cybercrime is still a major problem that the industry continues to face. From the days of Mt. Gox, it became clear, in many ways, crypto traders are not always safe, and thus many companies are working hard to ensure that the right protections are instilled, though things don’t always work out for the better.
Not long ago, the founder of Bit Connect – a crypto trading platform – was purportedly charged by authorities in the U.S. for engaging in what is alleged to be a classic Ponzi scheme. The founder – who is believed to be at large in India – promised heavy returns for all crypto investors who took part, though many investors never saw these returns, as their money was instead being used for things like paying off past investors or providing the executive with a luxurious lifestyle.
Source: https://www.livebitcoinnews.com/sibling-pair-charged-with-illegal-sales-of-ormeus-coin/