Ormeus Coin: $124 Million Lost to Brother and Sister in Crypto Scam

• Federal regulators have accused two siblings of defrauding thousands of investors out of $124 million through Ormeus coin

• The SEC alleges that John and JonAtina Barksdale used social media to sell fraudulent investments to unsuspecting victims in the crypto scam

• Investors have been warned about numerous potential investment scams and investing based on social media

The Securities and Exchange Commission disclosed on Tuesday that thousands of investors have lost more than $124 million to two siblings in a crypto scam. The brother and sister created two unregistered fraudulent offerings of securities in the digital token Ormeus Coin.

John and JonAtina Barksdale have been charged with violation of federal securities laws, manipulation of the price of their coin, and using investors’ money for personal purchases.

In a statement that was released by the associate director of the SEC’s Division of Enforcement, Mellisa Hodgman, the siblings were alleged to have acted as “modern-day snake-oil salesman”, misleading investors through promotion on social media and websites.

Hodgman promised that the SEC was going to continue pursuing people that sell security schemes with the aim of defrauding investors.

Read also: Woman Tricked Out of $1,400 by Instagram Hacker

The SEC’s report also disclosed that the duo started a marketing business, Ormeus Global that offered subscription packages that included Ormeus Coin and investment in a crypto trading program.

While John Barksdale held programs around the world to promote the offerings, his sister marketed them on YouTube and other social media platforms, lying about the project’s mining operations.

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