The SEC has obtained a judgment against the Ormeus Coin project founders.

The siblings behind the project were fined $46 million for the token.

The charges of fraud and conspiracy were presented last year.

The judgment marks a significant crackdown by the SEC on crypto fraud.

The SEC has repeatedly warned investors about the risks of investing in digital assets.

The case highlights the importance of conducting thorough due diligence before investing in any cryptocurrency project.

Ormeus Coin Founders Fined $46 Million for Orchestrating Massive Crypto Fraud Scheme

The United States Securities and Exchange Commission (SEC) recently obtained a judgment against John and Tina Barksdale, the founders of the Ormeus Coin project, for conducting a crypto fraud scheme via the token. The siblings were fined $46 million, given permanent injunctions, and disgorgement with interest. In this article, we delve into the details of the case and what it means for the crypto industry.

Overview of the Ormeus Coin Project

The Ormeus Coin project claimed to be "a new digital money system backed by a fully-audited industrial crypto-mining operation." The cryptocurrency also operated on Ethereum, but there hasn't been much to show for it in terms of development. The project raised tens of millions of dollars from June 2017 to March 2022, according to the SEC complaint.

Details of the Fraud Scheme

The SEC complaint alleged that the siblings conducted two unregistered fraudulent offerings of securities, running a multi-level marketing business called Ormeus Global, which involved selling subscription packages that involved the token. To promote the offerings, John Barksdale held roadshows around the world while he and his sister, Tina, led the production of social media posts, YouTube videos, press releases, and other promotional materials. The token falsely claimed that it was supported by one of the world's largest crypto asset mining operations, which the siblings also claimed. The SEC noted that false information was provided regarding this supposed relationship.

Charges and Conclusion of the Case

The case first came to light in 2022 when the United States Department of Justice published a press release detailing the case on March 8, 2022. The charges listed back then were related to conspiracy, securities fraud, and wire fraud. The Ormeus Coin project case made a lot of news when it first came out, and there may be more news yet.

Takeaways

The Ormeus Coin project case is a stark reminder of the importance of conducting due diligence before investing in any cryptocurrency project. Investors must be wary of schemes that promise quick and massive returns, especially when they involve multi-level marketing. The SEC's crackdown on fraudulent crypto schemes shows that it is committed to protecting investors and the integrity of the market.

Conclusion

The SEC's judgment against the founders of the Ormeus Coin project is a significant development in the fight against crypto fraud. The case highlights the importance of investor protection and due diligence, especially in the highly speculative and unregulated crypto market. The Ormeus Coin project case may be just the tip of the iceberg, as the SEC continues to investigate fraudulent crypto schemes and hold their perpetrators accountable.

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