Ormeus Coin's John, Tina Barksdale Scammed Investors, Feds Say (gizmodo.com) 16
An anonymous reader quotes a report from GIzmodo: Ormeus is a cryptocurrency that was launched in 2017, the brainchild of John and Tina Barksdale -- two siblings and self-identified crypto marketers -- who are now facing federal securities charges in connection with their business. In a complaint unsealed Tuesday, the Securities and Exchange Commission charged the siblings with defrauding their investors out of $124 million. In an accompanying federal indictment unsealed the same day, the Justice Department announced multiple charges against John Barksdale -- wire fraud, conspiracy to commit wire fraud, conspiracy to commit securities fraud. Both agencies allege that the duo used misleading and outright fraudulent marketing techniques to lure in investors to a coin that wasn't nearly as valuable as they claimed.
"As alleged, Barksdale operated like a traveling salesman and peddled lies, overstatements, and misrepresentations regarding a cryptocurrency called Ormeus Coin, which resulted in duping thousands of investors throughout the world," said Ricky J. Patel, Homeland Security Investigations New York Special Agent in Charge, in a statement. According to officials, the Barksdales claimed that their business was supported by "one of the largest crypto mining operations in the world" and that the company was raking in monthly mining revenue between $5.4 and $8 million. The Barksdales also heralded their token as a "new digital money system backed by a fully-audited industrial crypto-mining operation." But, according to federal officials, most of those claims were BS.
Officials say the Ormeus mining operations shut down in 2019 after drawing too little money, that it never reached even a million dollars per month. According to the DOJ, John Barksdale claimed to have $250 million worth of Bitcoin stored at the mining operation that would secure the token's value. In reality, the coins belonged to someone else, the indictment states. The indictment against him claims that misrepresentations and fabrications about the coin's value were promoted via Ormeus Global, a multi-level marketing company that used false and manipulative advertising to encourage hapless investors to go all-in on the coin.
"As alleged, Barksdale operated like a traveling salesman and peddled lies, overstatements, and misrepresentations regarding a cryptocurrency called Ormeus Coin, which resulted in duping thousands of investors throughout the world," said Ricky J. Patel, Homeland Security Investigations New York Special Agent in Charge, in a statement. According to officials, the Barksdales claimed that their business was supported by "one of the largest crypto mining operations in the world" and that the company was raking in monthly mining revenue between $5.4 and $8 million. The Barksdales also heralded their token as a "new digital money system backed by a fully-audited industrial crypto-mining operation." But, according to federal officials, most of those claims were BS.
Officials say the Ormeus mining operations shut down in 2019 after drawing too little money, that it never reached even a million dollars per month. According to the DOJ, John Barksdale claimed to have $250 million worth of Bitcoin stored at the mining operation that would secure the token's value. In reality, the coins belonged to someone else, the indictment states. The indictment against him claims that misrepresentations and fabrications about the coin's value were promoted via Ormeus Global, a multi-level marketing company that used false and manipulative advertising to encourage hapless investors to go all-in on the coin.
free money for all! (Score:2)
Re: (Score:2)
Who would have thought that bullshit and lies could have real world consequences. I mean, this is the internet, right? My bullshit, your money or attention. It's just business, yeah? Pfffft.
Huh. No arrest record for PT Barnum.
Or any banker after 2008.
I mean, this is our history, right? Their bullshit, your money, no consequences? Perhaps we stop wondering how history repeats itself when humans are involved.
Re: free money for all! (Score:2)
Re: (Score:2)
Don't you want to see the amputee transvestite fire breathing drawrf?
Woah, easy now. You've got cancel culture heads popping like zits on a teenage face before prom.
And that's a midget, you racist.
Re: (Score:3)
Unless said banker was in Iceland.
Modern Internet = useless (Score:2)
Re: (Score:2)
* there are online SMS tools to receive confirmation tokens so you can create accounts on websites that need a number. I used that with gmail and outlook.com
* youtube works fine with Palemoon 29.4.4 on linux.
* The US websites not accessible from EU are those complying with EU law (they collect or store data in a way that's not allowed within EU). Arguably it's the US websites that remain accessible that are disrespectful to you by not abiding to the laws of your EU place.
* gmail IMAP/SMTP servers work fine
cryptocurrency scam OH NO !! (Score:1)
Re: (Score:2)
It's based on nothing, You would expect to lose.
Keep your damn voice down. The US Stock market might hear you.
Re: (Score:1)
Keep your damn voice down. The US Stock market might hear you.
Aiming for a bonus this month, tovarisch?
Re: (Score:2)
Funny, but the US Stock market is poised to bone us, not bonus.
And it sure as hell wouldn't be the first time we sat back and let Greed do it.
Crypto-backed crypto? Huh? (Score:2)
Okay... So it has value because it's backed by something whose value is entirely imaginary?
P T Barnum (Score:2)
Nuff said.