Chiara Bianchi
U.S. officials have formally accused two individuals of orchestrating a massive cryptocurrency fraud that lured in thousands of unsuspecting investors. The fraudulent operation, run under the name OmegaPro, allegedly raised over $650 million before ultimately collapsing.
According to a recently unsealed indictment, Michael Shannon Sims and Juan Carlos Reynoso are accused of establishing OmegaPro in 2019. The platform offered outrageous returns of up to 300% within just 16 months, claiming that expert forex traders were behind the profits.
However, investigators say that instead of real trading activity, investor fundsโcollected in cryptocurrencyโwere secretly channeled through wallets under the duoโs control. Top promoters received payouts to keep the illusion alive, while new money funded the scheme.
Glamorous Events, Global Hype โ and a Giant Lie
To give their scam a veneer of legitimacy, Sims and Reynoso organized extravagant promotional events across Latin America, Europe, and the U.S. They showcased luxury cars, high-end fashion, and even projected the OmegaPro logo onto Dubaiโs Burj Khalifa โ all in an effort to boost investor confidence and attract more victims.
But as cracks began to form, the founders blamed a mysterious โnetwork hackโ, claiming investor assets were being shifted to a new venture called Broker Group. In reality, this was just another ruse: withdrawals were blocked, and users permanently lost access to their funds on both platforms.
Legal Consequences: Facing Up to 40 Years Behind Bars
Both men now face serious federal charges, including wire fraud and money laundering, and could each serve up to 40 years in prison if convicted. The indictment is one of the largest of its kind involving crypto, underlining a renewed crackdown on digital asset crimes.
In a related development, UK regulators recently sentenced two crypto scammers to a combined 12 years in prison for promoting fake crypto investment opportunitiesโcosting victims over ยฃ1.5 million.
Justice Department Vows to Keep Fighting Crypto Fraud
A senior official from the U.S. Department of Justice emphasized that authorities are intensifying efforts to eliminate crypto-related fraud that exploits digital investors.
โWe are leading efforts to combat these complex and insidious digital asset investor scams,โ the official said.
โOur mission remains clear: to deliver justice for those targeted by these fraudulent operations.โ
