US charges two men in $650M OmegaPro crypto scam that promised 300% returns

The US Department of Justice (DOJ) has unsealed charges against two individuals accused of orchestrating the OmegaPro crypto scam. This fraudulent investment scheme allegedly swindled over $650 million from victims worldwide.

Michael Shannon Sims and Juan Carlos Reynoso reportedly lured investors with false promises of 300% returns through forex trading, while funneling funds into personal crypto wallets. If convicted, each faces up to 40 years in prison.

The case highlights growing regulatory scrutiny of crypto-related fraud, particularly multilevel marketing (MLM) schemes that exploit investor optimism. The OmegaPro crypto scam joins a string of high-profile crypto fraud cases, including the recent arrest of co-founder Andreas Szakacs in Turkey over separate $4 billion allegations.

How the OmegaPro crypto scam operated

According to the DOJ indictment filed in Puerto Rico, Sims (an alleged founder and promoter) and Reynoso (who led Latin American operations) ran the OmegaPro crypto scam between 2019 and 2023. The scheme sold “investment packages” marketed as low-risk opportunities to profit from elite forex traders.

“They 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,” — Matthew Galeotti, head of the DOJ’s Criminal Division.

Investors were instructed to buy packages using cryptocurrency, with guarantees of 300% returns within 16 months. However, prosecutors allege these claims were entirely fabricated, and no legitimate trading occurred.

Lavish marketing masked a Ponzi scheme

To build credibility, the accused allegedly hosted high-profile events, including projecting the OmegaPro crypto scam logo on Dubai’s Burj Khalifa—the world’s tallest building. Social media posts flaunted luxury cars, designer goods, and exotic vacations to portray OmegaPro as a legitimate path to wealth.

“They used deceptive marketing to convince investors this was a real enterprise, when in reality, it was a classic Ponzi structure,” — DOJ spokesperson in a press briefing.

In January 2023, OmegaPro claimed a “network hack” and redirected users to a platform called Broker Group. Prosecutors say this was a cover to prevent withdrawals, as funds were secretly laundered through crypto wallets controlled by insiders.

Legal fallout and industry warnings

Sims and Reynoso each face 20-year sentences for wire fraud and money laundering conspiracy. The case follows the July 2024 arrest of OmegaPro co-founder Andreas Szakacs in Turkey over unrelated $4 billion fraud allegations.

The OmegaPro crypto scam serves as a cautionary tale for investors:

• Too-good-to-be-true returns (e.g., 300% gains) are a major red flag.

• MLM-driven crypto schemes often rely on recruitment over real revenue.

• Regulators are cracking down, with the DOJ prioritizing crypto fraud cases.

“This indictment sends a clear message: Crypto scams will face severe consequences. We’re tracking similar schemes globally.”

SEC enforcement official (anonymous due to ongoing investigations).