MASSENA, New York (WWNY) – Two former Massena cryptocurrency miners face fraud charges. Prosecutors say they scammed investors out of millions of dollars.
It was once one of the hottest companies in Massena – literally and figuratively. Big fans cooling computers purportedly churning out a cryptocurrency called “Ormeus Coin.”
Here’s what one of the mine’s operators, Tina Barksdale, said there four years ago: “It’s basically a gold rush. The gold that is here is the hydro-dam. It’s the power and the cheap electricity that’s here.”
According to federal regulators, it was a gold rush, but not a legitimate one. They allege Tina Barksdale and her brother, John, defrauded investors.
Ricky J. Patel, Homeland Security Investigations special agent in charge, had this to say about John: “As alleged, Barksdale operated like a traveling salesman and peddled lies, overstatements, and misrepresentations regarding a cryptocurrency called Ormeus Coin, which resulted in duping thousands of investors throughout the world and took in over $70 million.”
A separate civil action puts the fraud at $124 million. Prosecutors say Tina and John spun a “web of lies” on their Ormeus Coin website.
When 7 News visited with Tina Barksdale in Massena four years ago, she showed us their cryptocurrency mining operation. She encouraged us to look at her brother’s Facebook page, which showed John in exotic, luxurious overseas locales. The Barksdales said they had made hundreds of millions of dollars trading in cryptocurrencies.
John Barksdale was arrested abroad Tuesday and charged with wire and securities fraud.
In a separate civil action, federal regulators charged John and Tina together with securities fraud.
It’s all a big comedown from what Tina told 7 News four years ago: “We’re from upstate New York and we understand the job disparities of this area, and we wanted to be able to bring something back to the community.”
The Barksdales’ Massena mine closed in 2019.
The town of Massena currently has a moratorium on any new cryptocurrency operations. Two others already operate there. Several others want to get in.
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