- SEC accuses John and JonAtina Barksdale of alleged altcoin fraud. The two brothers are now on trial for fraud in excess of $124 million.
- The brothers are accused of deceiving and lying to investors.
- John Barksdale staged demonstrations promoting the alleged fake Ormeus Coin, while JonAtina Barksdale promoted the product on YouTube and social media sites.
- Due to the event, the altcoin price lost more than 55 percent.
The Securities and Exchange Commission has accused John and JonAtina Barksdale of misleading investors through false claims in a cryptocurrency scheme. As Kriptokoin.com, we have compiled the details for you, let’s examine the matter together…
SEC accuses John and JonAtina Barksdale of altcoin fraud
SEC charges against a pair of brothers accused of committing multimillion-dollar crypto fraud found. John and JonAtina Barksdale are accused by the SEC of scamming more than $124 million through an unregistered counterfeit securities offering through an altcoin called ‘Ormeus Coin’. The complaint covers the brothers’ Ormeus Coin and investment platform called Ormeus Global.
Barksdales was also accused of providing “false” information, alleging that Ormeus Coin is backed by a “$250 million crypto mining operation” that generates monthly revenues of $5.4 million to $8 million. However, the brothers’ mining operations ended in 2019 and only grossed $3 million in total. John Barksdale is also accused of hosting “worldwide” roadshows to promote the couple’s proposals.
Cryptocurrency price tumbled more than 55 percent due to news
Tina Barksdale’s offers YouTube, press releases, social media posts and “other allegedly promoted it through “promotional materials”. The complaint also includes allegations of price manipulation and misuse of investor funds for “personal expenses.” Melissa Hodgman, SEC’s Assistant Director of Enforcement, said:
Barksdales is using social media, promotional websites and self-promotions to mislead retail investors for their own personal gain to mislead retailers of today. .
Altcoin price tumbled more than 55 percent on the impact of the news. At the time of writing, the depreciation of the coin continues.
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