In their latest case targeting alleged fraud in cryptocurrency, federal regulators have accused two siblings of defrauding thousands of ordinary investors out of some $124 million in unregistered securities offerings involving a digital token
WASHINGTON — In their latest case targeting alleged fraud in cryptocurrency, federal regulators have accused two siblings of defrauding thousands of ordinary investors out of some $124 million in unregistered securities offerings involving a digital token.
The Securities and Exchange Commission alleged in a civil lawsuit filed Tuesday that John and JonAtina Barksdale used in-person roadshows around the world and social media including YouTube videos to sell fraudulent investments related to the so-called Ormeus Coin. The SEC said they falsely claimed that the digital coin was supported by one of the largest crypto mining operations in the world — after making less than $3 million in mining revenue and abandoning their mining operations in 2019.
The SEC suit filed in federal court in Manhattan accuses the siblings of violating federal securities laws and seeks unspecified civil penalties and restitution.
In addition, federal prosecutors in Manhattan announced Tuesday that John Barksdale has been arrested and charged with criminal securities fraud.
John and JonAtina Barksdale couldn’t be located for comment; the SEC said it…
