SEC Bites Siblings In $124 Million Cryptocurrency Fraud

• SEC stated that a sister and brother duo were involved in a fraud, deceiving thousands of investors in a $124 Million fraud.
• The duo also commenced Ormeus Global, a multi level marketing business, where they provided and sold subscription schemes.
• The pair also allegedly told investors that it had a $250 million cryptocurrency mining operation which generated a massive revenue.

The Snake Oil Fraud

A brother and sister pair were involved in a Snake Oil scam where the Securities and Exchange Commission stung them on their way. SEC stated that the pair deceived thousands of investors out of over $124 Million through couple of unlisted, fraudulent securities offerings in virtual token Ormeus Coin.

Tina and John Barksdale are charged with breach of federal securities regulations, manipulating the value of their coin and utilizing investors fund for personal use, SEC stated on tuesday.

SEC’s Enforcement Division’s associate director, Melissa Hodgeman stated in a news release that, SEC alleges that Barksdale siblings are charged for breach in federal securities, manipulation in coin’s value, and utilizing funds of investors for private gains.

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Hodgeman further added that, SEC will continue to vigorously seek who try to trade securities in fraudulent schemes using investors money, no matter what tag the marketers imply on their items.

As per SEC, Barksdale scheme persisted from June 2017 until current date, with brother and sister provided and sold Ormeus tokens to investors on cryptocurrency trading platforms.

The duo also commenced a multi-level promoting business titled Ormeus Global, offering and selling subscription packages that involved Ormeus Coin, a cryptocurrency trading program. 

SEC stated that John Barksdale held roadshow events across the globe for promotion of their offerings, while sister marketing such on YouTube, social media and other platforms, wrongly claiming Ormeus Coin was backed by among the biggest cryptocurrency operations globally, even though they closed the ops back in 2019, after $3 Million of revenue generation.

Meanwhile, Barksdales were manipulating investors by saying that Ormeus Coin has $250 Million mining operation that generated from $5.4 Million to $8 MIllion in a month.

Fro preserving this image, barksdale organized for a open website to show a wallet from an unlinked party, showing over $190 Million in assets as of November 2021, even after the wallets were having worth lower than $500,000,” SEC stated.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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