SEC has charged the founders of Ormeus Coin with fraud in $124 million case, price dropped by 40%
The United States Securities and Exchange Commission (SEC) has charged the founders of Ormeus Coin with fraud. The two founders are accused of running a multi-level marketing business that defrauded investors through false statements and false statements.
Source: SEC
The SEC charged Ormeus Coin with defrauding investors
The SEC has charged the founders of Ormeus Coin with fraud. The agency released a press release on March 8 on the matter, saying that two siblings, John and JonAtina (Tina) Barksdale, had engaged in a fraudulent operation that resulted in stolen $124 million.
The SEC says that the two individuals responsible for providing two unregistered securities services used a multi-level marketing scheme that used misleading slideshows and YouTube videos to promote their business. The Barksdales had offered and sold subscription packages that included Ormeus Coin and a crypto trading program investment.
“The complaint alleges that at the events, in the produced materials, and currently on Ormeus Coin’s website, the defendants falsely claimed that Ormeus Coin was supported by one of the largest crypto mining operations in the world, even though they abandoned their mining operations in 2019 after generating less than $3 million in total mining revenue”, SEC stated.
Ormeus price | Source: CoinMarketCap
The statement also alleges many other false claims were made. Ormeus Coin has dropped from $0.003839 to $0.002782 in the last 24 hours, down about 21%.
The SEC has been clear about the need for the cryptocurrency market to monitor and ensure investor protection. The Ripple lawsuit, alleging that XRP is unregistered security, continues and is unlikely to be resolved within the next 30 days.
The SEC is also investigating the NFT market for securities violations. This will prove another challenge for the SEC, which has full hands as it also looks at crypto ETFs.
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