Authorities Arrest Man Behind Alleged Crypto Scheme
Authorities arrested a man who committed cryptocurrency securities fraud by misrepresenting the size and profitability of Ormeus Coin, DOJ announced Tuesday. John Albert Loar Barksdale, 40, falsely claimed that Ormeus “was secured by a $250 million cryptocurrency mining operation, which…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
would have been one of the largest such operations in the world, and that its mining revenues exceeded $5 million on a monthly basis,” the department said. According to DOJ, he raised $70 million from more than 8,000 investors “through a web of lies, which he spread through in-person roadshows, social media, and even a jumbotron in Times Square.” He faces up to five years in prison for securities fraud and up to 20 years for additional charges of conspiracy and wire fraud. The company didn't comment.