An investigation into the Ormeus Coin has uncovered several blunders by the brothers and founders of the crypto trading program. In addition to misleading marketing, the Barksdales also engaged in outright lies and deception when marketing their product. According to DOJ Special Agent Ricky J. Patel, the brothers misled investors by falsely claiming their company was a $250 million crypto mining operation. They even ran an ad on a Times Square jumbotron.
The alleged fraudulent activities of Jack and Tina Barksdale have resulted in over $124 million being seized by the federal government. This money was stolen through bogus multi-level marketing schemes and spent on personal expenses. The federal government is now focusing on the two alleged criminals and are taking legal action to recover any money that investors lost. The case is still ongoing, but it is clear that the Barksdales have committed several crimes.
Special Agent Ricky J. Patel, who is in charge of investigating the case, stated that the defendants “acted like traveling salesmen.” They peddled misleading claims about the digital currency, while claiming to earn between $5.4 million and $8 million per month. As a result, thousands of investors worldwide were duped. This is the first instance of this type of scam involving cryptocurrency.
The Barksdales’ actions are a result of their failure to follow proper regulatory requirements. Their unregistered securities offerings were a recipe for fraud, and the SEC is pursuing John and Tina Barksdale for their alleged crimes. They are also accused of defrauding retail investors out of $124 million. Regardless of whether or not the charges are true, the Ormeus Coin is still one of the largest scams of all time.
The Barksdales were arrested overseas for a $124 million crypto fraud scheme. The DOJ did not disclose where they were arrested. But it did confirm that the couple was engaged in a multi-level marketing scam in which retail investors purchased subscription packages to purchase Ormeus Coin. While this is unfortunate for the public, the case against them should not have any lasting consequences. But their actions should be a wake-up call for the cryptocurrency industry.
According to the FTC, BARKSDALE approved marketing materials depicting the purported Ormeus Coin mining facility. They also deceptively referenced a “Ormeus Reserve Vault” in which they stored over 3,000 Bitcoin. These false statements included “Ormeus Coin mining revenues” of over $5 million per month. However, the Ormeus Coin failed to generate the promised revenue.