United States Securities and Exchange Commission (SEC)accused the founders of Ormeus Coin of fraud. The two founders are accused of running a multi-level marketing business that defrauds investors with misrepresentations and misrepresentations.
SEC, Ormeus Coinaccused the founders of fraud. The agency issued a press release on the matter on March 8, stating that two brothers, John and JonAtina (Tina) Barksdale, were involved in a fraudulent operation that resulted in the theft of $124 million.
The SEC noted that these two brothers, who are thought to be responsible for providing two unregistered securities services, used a multi-level marketing plan that used misleading presentations and YouTube videos to promote their businesses. Barksdales had offered and sold subscription packages that included Ormeus Coin and an investment in a crypto trading program.
“Blame; In the events, in the materials produced, and currently on Ormeus Coin’s website, the defendants allege that Ormeus Coin is backed by one of the world’s largest crypto mining operations, even though they have abandoned their mining operations. The SEC also found that they generated less than $3 million in total mining revenue in 2019.”
The statement also alleged that many other false claims were made. Upon these negative news, Ormeus Coin decreased by about 21% from $ 0.003839 to $ 0.002782 in the last 24 hours.
SEC, cryptocurrency demonstrated once again that the market is clear that it must monitor and provide investor protection. On the other hand, the Ripple lawsuit claiming that XRP is an unregistered security is still ongoing and is unlikely to be resolved in the next 30 days.
The SEC also continues to investigate the NFT market for securities breaches. This will pose another challenge for the SEC, which has its hands full as it also looks into crypto ETFs.