The US has charged two males, alleging they operated and promoted a crypto funding scheme known as OmegaPro that defrauded traders out of over $650 million.
The Division of Justice mentioned on Tuesday that it unsealed an indictment in a federal courtroom in Puerto Rico in opposition to Michael Shannon Sims — an alleged founder, strategic advisor and promoter of OmegaPro — and Juan Carlos Reynoso, whom it claimed led the agency’s operations in Latin America.
Matthew Galeotti, head of the DOJ’s Prison Division, claimed the pair “preyed upon weak people within the US and overseas, defrauding them of over $650 million by making false guarantees of considerable returns and that their cash was protected.”
OmegaPro promised 300% returns, DOJ alleges
The Justice Division alleged that OmegaPro was a multilevel advertising and marketing scheme concentrating on crypto traders between 2019 and 2023 that offered “funding packages.”
Sims and Reynoso allegedly promised the packages would generate 300% returns over 16 months by means of overseas alternate buying and selling by “elite merchants,” in response to the DOJ.
Members had been allegedly instructed to buy these funding packages utilizing cryptocurrency.
“Lavish” promo occasions aimed to hook consumers
The duo allegedly used misleading advertising and marketing methods and “hosted lavish OmegaPro promotional occasions and trainings” worldwide, together with projecting the agency’s brand on the Burj Khalifa in Dubai, the world’s tallest constructing.
The Justice Division claimed the pair additionally displayed costly holidays, luxurious automobiles, and designer objects on social media “to persuade current and potential traders that OmegaPro was a reputable enterprise that supplied a path to wealth and an opulent way of life.”
OmegaPro introduced that it had suffered a community hack in January 2023, telling shoppers that their investments had been safe and the Dubai-headquartered agency was transferring their funds to a different platform known as Dealer Group, in response to the DOJ.
Nevertheless, prosecutors alleged traders couldn’t withdraw their funds from both platform, as they had been laundered by means of crypto wallets to insiders.
Accused OmegaPro promoters face 40 years jail
Sims and Reynoso every face costs of wire fraud conspiracy and cash laundering conspiracy, with every carrying a most penalty of 20 years in jail.
OmegaPro co-founder Andreas Szakacs was arrested in Turkey in July 2024 over accusations of duping traders out of $4 billion by means of the agency, allegations which he denies.
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