The US Securities and Exchange Commission has recently secured a conviction against the organizers of the Ormenus Coin cryptocurrency project, and is now seeking payment of a fine for duping investors.
According to the regulator, siblings John Barksdale and Jonatina Barksdale developed and operated a pyramid scheme called Ormeus Global from June 2017 to April 2018, actively advertising and selling subscription packages for their fraudulent cryptocurrency project.
The SEC alleges that John promoted deceptive schemes by conducting promotional events around the world, while his sister was in charge of advertising support, including social media posts, YouTube videos, and press releases.
To give their proposals credibility, the Barksdales claimed that Ormeus Coin’s liquidity was maintained through mining, with total revenue exceeding $250 million, generating $8 million in monthly income for project participants.
The SEC’s lawsuit claims that the Barksdales cheated thousands of retail investors out of more than $124 million.
US authorities have opened a criminal case against John Barksdale and filed civil charges against Jonatina for fraud.
John could face up to 65 years in prison, and both siblings were fined a total of $82 million for violating US securities laws.
Recently, SEC Chairman Gary Gensler appealed to the US government to provide $2.4 billion to the agency for more effective prosecution of unregistered cryptocurrency companies.