The U.S. Securities and Exchange Commission (SEC) brought charges against John and JonAtina Barksdale for their involvement in a $124,000,000 cryptocurrency fraud ring.
The SEC filed its complaint in the Southern District of New York on March 8 and alleged that the siblings organized “unregistered fraudulent offerings of securities” relating to the sale of “Ormeus Coin.” (SEC Report)
According to the SEC complaint, the duo extensively marketed Ormeus Coin by “hosting roadshows around the world,” and by producing “social media posts, YouTube videos, press releases, and other promotional materials.”
The siblings also “arranged for a public website to display a wallet of an unrelated third party showing more than $190 million in assets as of November 2021, even though the Ormeus wallets were worth less than $500,000.” (SEC Complaint)