OmegaPro Founders Charged Over $650 Million Crypto ‘Global Fraud Scheme’
Federal prosecutors have charged two OmegaPro executives with orchestrating a $650 million cryptocurrency scam under the guise of a forex investment platform. Michael Shannon Sims, 48, and Juan Carlos Reynoso, 57, are accused of deceiving thousands of investors globally through OmegaPro, described as a fraudulent scheme that pretended to be a legitimate forex and crypto trading platform.
The Department of Justice unveiled that Sims and Reynoso initiated the OmegaPro multi-level marketing scheme in January 2019, luring investors to purchase “investment plans” using virtual currency with promises of substantial profits from elite traders engaging in forex trading. The duo, alongside collaborators, attracted victims with assurances of triple-digit returns, only to divert funds into controlled crypto wallets. Profits were allegedly funneled to experts and top promoters to obfuscate the money trail, with both perpetrators allegedly profiting millions from the operation.
Matthew R. Galeotti, the head of the DOJ’s Criminal Division, condemned the accused for preying on vulnerable individuals globally and defrauding them of more than $650 million through false promises of high returns and fund security.
Expert Insights on Crypto MLM Scams
Karan Pujara, the founder of the anti-scam platform ScamBuzzer, emphasized that crypto MLM scams often leverage powerful psychological tactics to deceive victims with promises that seem “too good to be true.” These fraudulent schemes exploit the emotions and aspirations of unsuspecting investors, leading them to believe in unrealistic returns and guarantees.
Links to Previous Crypto Scams
Turkish authorities suspect that OmegaPro’s funds might be connected to the notorious OneCoin cryptocurrency scams that defrauded investors of $4 billion in 2017. The similarities in operation and the scale of deception raise concerns about the prevalence of fraudulent activities within the crypto industry and the need for enhanced regulatory measures to protect investors.
