The US Securities and Change Fee (SEC) has introduced that John Barksdale and JonAtina (Tina) Barksdale, the founders of a crypto-currency fraud scheme, will every pay $23 million, following a ruling by the Southern District Court docket of New York. March 15
Final March, the SEC filed a lawsuit in opposition to the Barksdale siblings, accusing them of deceptive buyers with false claims about cryptocurrency and crypto-currency fraud.
Barksdales issued OrmeusCoin, a digital foreign money that defrauded 1000’s of retail buyers of greater than $124 million, in line with an SEC disclosure.
The SEC order alleges that John Barksdale and JonAtina Barksdale made false statements about their corporations’ earnings and enterprise operations, together with offering false audit stories to buyers. As well as, the siblings additionally used the funds raised from buyers to pay for his or her private bills, together with luxurious automobiles and personal jets.
Gurbir Grewal, the SEC’s director of enforcement, emphasised the significance of holding these answerable for the fraudulent schemes accountable, saying, “Barksdales, which used the promise of innovation to garner investor optimism, will now pay dearly for its greed and misconduct.”
The high-quality imposed on Barksdales is likely one of the largest ever imposed by the SEC in a cryptocurrency-related case. The SEC has cracked down on fraudulent schemes involving digital property, warning buyers to be cautious and do their due diligence earlier than investing in any cryptocurrency.
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