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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…

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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.