Siblings face fraud charges for alleged 'Ormeus Coin' crypto scheme

John and Tina Barksdale were charged Tuesday for alleged securities fraud, wire fraud and conspiracies to commit both by selling a cryptocurrency called “Ormeus Coin.” 

According to a release from the Department of Justice, John Barksdale misrepresented that Ormeus Coin secured a $250 million mining operation and accrued more than $5 million in revenue each month, despite the coin never approaching such value. 

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“As alleged, John Barksdale perpetrated a scheme to sell the cryptocurrency Ormeus Coin to investors around the world through a web of lies, which he spread through in-person roadshows, social media and even a jumbotron in Times Square,” U.S. attorney Damian Williams said in a press release. 

The alleged crimes occurred starting in June 2017, with Ormeus Coin reaching its peak market capitalization of $52 million at around January 2018. The Barksdales allegedly defrauded investors for more than $124 million through Ormeus Coin, a release from the Securities and Exchange Commission (SEC) states. 

The Barksdales face up to a maximum sentence of 20 years for each charge of securities fraud, wire fraud, with a maximum of five years for conspiracy to commit securities fraud.

About Author

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.