OmegaPro Co-Founder Andreas Szakacs Arrested in Turkey Over Alleged $4 Billion Crypto Scam

Andreas Szakacs, the co-founder of the now-defunct OmegaPro platform, was arrested in Turkey over alleged crypto scam. Authorities have linked him to a staggering $4 billion crypto Ponzi scheme that has defrauded thousands of investors globally. The arrest marks a significant development in the ongoing investigation into one of the most audacious crypto scams in recent history.

Andreas Szakacs’ Role in OmegaPro’s Downfall

Andreas Szakacs, who had legally changed his name to Emre Avci upon relocating to Turkey, is accused of masterminding a sophisticated scheme that lured investors with promises of astronomical returns. OmegaPro, founded in 2019 and headquartered in Dubai, marketed itself as a crypto and forex investment company offering up to 300% returns on investments. These returns were allegedly generated through an “automated trading” algorithm, a claim that now appears to have been nothing more than a facade.

According to media reports from 22 August, Andreas Szakacs’s arrest was triggered by a tip-off on 28 June from an anonymous source. This was further substantiated by Dr. Abdul Mohaghegh, a Dutch national representing 3,000 investors who collectively lost $103 million to OmegaPro. Andreas Szakacs has vehemently denied all allegations, but the mounting evidence suggests otherwise.

A Ponzi Scheme Unveiled

The OmegaPro platform, at its peak, boasted a growing user base, many of whom were enticed by quick, initial returns. However, as is typical with Ponzi schemes, these returns were soon followed by demands for further investments. Investors were assured that their money was safe and would yield even higher returns. But by November 2022, the facade began to crumble. On 7 November, OmegaPro started locking user accounts, and by 22 November, withdrawals had been completely halted.

The collapse of OmegaPro coincided with the implosion of the high-profile crypto exchange FTX, sending shockwaves through the industry. However, unlike FTX, which primarily targeted US-based investors, OmegaPro focused on non-US clients, particularly in regions such as Europe, Asia, and South America.

Regulatory Warnings and Investigations into Andreas Szakacs’ OmegaPro Activities

Before its downfall, OmegaPro had already attracted the attention of regulators in several countries. Authorities in France, Belgium, Spain, and Peru issued fraud warnings against the platform, highlighting its potential risks. Despite these warnings, OmegaPro continued to operate, raising questions about the effectiveness of cross-border regulatory enforcement in the rapidly evolving crypto space.

Upon his arrest, Turkish police seized several assets belonging to Andreas Szakacs, including computers, mobile devices, and 32 crypto cold wallets. Although Andreas Szakacs has refused to cooperate with authorities, local investigators were able to track over $160 million in transactions, according to the Turkish news outlet Birgun.

Links to OneCoin

One of the most damning aspects of the investigation is the alleged connection between OmegaPro and the infamous OneCoin crypto fraud. OneCoin, which was exposed as a Ponzi scheme in 2015, defrauded investors of approximately $4 billion. The similarities between the two schemes have not gone unnoticed by investigators, who believe that OmegaPro may have adopted some of the tactics that made OneCoin so successful in deceiving investors.

“The parallels between OmegaPro and OneCoin are striking. Both schemes promised extraordinary returns with little to no risk, and both ultimately left investors with nothing,” said a source close to the investigation.

As the investigation into Andreas Szakacs and OmegaPro continues, the legal ramifications are expected to be significant. Andreas Szakacs, a Swedish national, could face extradition to Sweden or other countries where OmegaPro defrauded investors. Meanwhile, the Turkish authorities are working to uncover the full extent of the fraud and recover as much of the stolen funds as possible.

This case is a stark reminder of the risks associated with unregulated crypto investments. As the industry continues to grow, so too does the need for robust regulatory frameworks to protect investors. Andreas Szakacs’s arrest is a significant step forward in bringing justice to the victims of the OmegaPro scam. Still, it also highlights the challenges that remain in policing the global crypto markets. The Bit Gazette has the latest crypto news and expert analysis.