US charges 2 men over $650M OmegaPro crypto scam

The US has charged two men, alleging they operated and promoted a crypto investment scheme called OmegaPro that defrauded investors out of over $650 million.

The Department of Justice said on Tuesday that it unsealed an indictment in a federal court in Puerto Rico against Michael Shannon Sims — an alleged founder, strategic consultant and promoter of OmegaPro — and Juan Carlos Reynoso, whom it claimed led the firm’s operations in Latin America.

Matthew Galeotti, head of the DOJ’s Criminal Division, claimed the pair “preyed upon vulnerable individuals in the US and abroad, defrauding them of over $650 million by making false promises of substantial returns and that their money was safe.” 

OmegaPro promised 300% returns, DOJ alleges

The Justice Department alleged that OmegaPro was a multilevel marketing scheme targeting crypto investors between 2019 and 2023 that sold “investment packages.”

Sims and Reynoso allegedly promised the packages would generate 300% returns over 16 months through foreign exchange trading by “elite traders,” according to the DOJ. 

Participants were allegedly instructed to purchase these investment packages using cryptocurrency. 

“Lavish” promo events aimed to hook buyers

The duo allegedly used deceptive marketing techniques and “hosted lavish OmegaPro promotional events and trainings” worldwide, including projecting the firm’s logo on the Burj Khalifa in Dubai, the world’s tallest building.

The Justice Department claimed the pair also displayed expensive vacations, luxury cars, and designer items on social media “to convince existing and prospective investors that OmegaPro was a legitimate enterprise that offered a path to wealth and a luxurious lifestyle.”

OmegaPro announced that it had suffered a network hack in January 2023, telling clients that their investments were secure and the Dubai-headquartered firm was transferring their funds to another platform called Broker Group, according to the DOJ.

However, prosecutors alleged investors could not withdraw their funds from either platform, as they were laundered through crypto wallets to insiders. 

Accused OmegaPro promoters face 40 years prison 

Sims and Reynoso each face charges of wire fraud conspiracy and money laundering conspiracy, with each carrying a maximum penalty of 20 years in prison. 

OmegaPro co-founder Andreas Szakacs was arrested in Turkey in July 2024 over accusations of duping investors out of $4 billion through the firm, allegations which he denies.