Cryptocurrency news

Cryptocurrency News: Barksdale siblings charged with cryptocurrency fraud of $124M Ormeus coin

Ormeus cryptocurrency coin turns out to be a scam. US government agencies have filed criminal charges against JonAtina “Tina” Barksdale and John Barksdale for defrauding its investors of $124 million via their cryptocurrency.

However, despite the fraudulent activities behind the coin, it is still circulating and being actively traded in the market.

Ormeus of Barksdale Coin

According to the Securities and Exchange Commission (SEC) investigation, Ormeus cryptocurrency coins turn out to be a scam.

US authorities have reportedly filed criminal charges against the Barksdale siblings for defrauding more than 20,000 investors of their digital crypto token Ormeus Coin.

The siblings were able to raise $120 million in investments which were personally spent on travel, hotel accommodations, investments and real estate.

The siblings promoted Ormeus Coin through various marketing strategies. John would travel the world to toss his coin in person.

As reported by The Guardianthe siblings will also do roadshows, and Tina will do social media and ad campaigns, including a Times Square jumbotron in Manhattan proclaiming, “$250 million cryptocurrency mining farm revealed in a legal audit by Ormeus Coin”.

As reported by Business Internthe SEC said: “To preserve the fiction that Ormeus Coin was successfully mining crypto, the Barksdales organized a public website to display an unrelated third-party portfolio showing over $190 million in assets in November. 2021, even if the Ormeus wallets were worth less than $500,000.”

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Cryptocurrency News: Barksdale Siblings Misrepresentation

The siblings launched the coin in 2017, introducing the token as a type of asset that can be verified using crypto.

According to Ormeus Coin websitethe coin is described as: “A new digital currency system backed by a fully audited industry-leading crypto-mining operation. Revenue from the mining farm is cryptographically linked to the Ormeus Reserve Vault (ORV) through proof technology asset and auto-execute Ethereum Blockchain smart contracts.”

According to the charges in federal court in Manhattan, John Barksdale lured investors by stating that the coin is backed with the largest cryptocurrency mining operations worth $250 million.

Another lie he told investors claims that the crypto mining operations they own have a minimum monthly income of $5 million. Moreover, the siblings also claimed that they have 3,000 Bitcoins in their reserved vault.

The U.S. Attorney’s Office for the Southern District of New York says the siblings’ claims behind their cryptocurrency mining operation are far from the truth.

Their operations have never reached $250 million and their revenue has never exceeded $1 million in any given month. It has also been revealed that the Bitcoin Reserve Vault does not belong to their operations but to a third party.

The pair reportedly abandoned their crypto-mining operation in 2019 after generating less than $3 million in total revenue, the SEC said. They continued to introduce Ormeus Coin to investors and even claimed that the revenue from the operation has grown to $8 million per month.

The Ormeus coin is still listed on the market today despite the Department of Justice and SEC filing fraudulent charges against its founders.

According to CoinMarketCapOrmeus coin price today is $0.00341.

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