The U.S. Securities and Exchange Commission (SEC) has announced that on March 15, 2023, a district court issued a final judgment against John and JonAtina (Tina) Barksdale.

The court ordered permanent injunctions, disgorgement with interest, and civil penalties for the defendants.

In addition to the permanent injunctions, the Barksdale siblings were ordered to pay disgorgement of $46,297,463 on a joint and several basis and prejudgment interest of $10,044,822. The court also ordered the Barksdales to pay a civil penalty of $23,148,731 each. 

The SEC's complaint alleged that from June 2017 to March 2022, the Barksdales raised tens of millions of dollars through two unregistered fraudulent offerings of securities involving a cryptocurrency called "Ormeus Coin." The complaint also alleged that from June 2017 to April 2018, they offered and sold subscription packages that included Ormeus Coin through a multi-level marketing business called Ormeus Global.

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 SEC alleged that the defendants falsely claimed that Ormeus Coin was supported by one of the largest crypto asset mining operations in the world, even though they abandoned their mining operations in 2019 after generating less than $3 million in total mining revenue.

The complaint further alleged that in many of these investor communications, the defendants falsely stated that Ormeus Coin had a $250 million crypto asset mining operation and was producing $5.4 million to $8 million per month in mining revenues. The SEC's final judgment against the Barksdales serves as a warning to those who engage in fraudulent offerings of securities involving cryptocurrencies.