Recently, SEC slammed the Barksdale siblings. They have been running a fraudulent digital token called Ormeus Coin. This was termed as a ‘modern-day snake oil salesman”.
The Barksdale siblings offered Ormeus Coins to unsuspecting investors through crypto trading platforms.
Ormeus Global, a multi-marketing business ran the scam. Here, the scammers sold subscription packages that included Ormeus Coin and investment in crypto schemes.
Furthermore, John Barksdale promoted the Barksdale scam. JonAtina Barksdale joined her brother in producing social media posts, YouTube videos, press releases along other promotional materials.
The Barksdale siblings are alleged to falsely claim the Ormeus Coin is supported by one of the world’s largest crypto mining operations. Furthermore, various produced websites and Ormeus Coin’s website backed this allegation.
Suspended Mining Operations in 2019 and fake figures
Total revenue of $3 million was generated from mining. The Barksdale scam investigation also led to the discovery of many communications made between the investors and the Barksdale siblings.
Moreover, in 2019, the false claim is also evident by the fact that the Barksdale Siblings abandoned the mining operations.
The communication revealed the fake figures claimed by the duo about the crypto mining operations even after suspended operations.
The claims included Oremus Coin having $250 million crypto mining operations. And also to add more oil to the raging fire. Moreover, the fraudulent siblings boasted of fake mining revenues ranging from $5.4 million to $8 million per month.
Also Read: Biden To Sign Executive Crypto Order This Week
Cautionary Remarks from SEC
Citing the Barksdale Scam that leveraged the use of social media and YouTube, Melissa Hodgman, Associate Director in the SEC’s Division of Enforcement ensured that the team will ‘vigorously pursue’ people who are defrauding the public with fake schemes regardless of the promotion methods used.
The SEC’s Office of Investor Education and Advocacy cautions that investors should be alert about crypto investment scams and trust social media promoted investing schemes carefully
