The United States Department of Justice has unsealed federal charges against two individuals accused of operating a massive cryptocurrency fraud scheme known as OmegaPro, which allegedly defrauded investors out of over $650 million between 2019 and 2023.
DOJ Alleges OmegaPro Promised 300% Returns to Investors
According to the Department of Justice, Michael Shannon Sims and Juan Carlos Reynoso are at the center of the multilevel marketing scheme. Sims, described as a founder and strategic consultant, and Reynoso, who led operations in Latin America, are accused of luring investors with promises of outsized returns.
The scheme allegedly guaranteed 300% returns over 16 months through forex trading handled by so-called “elite traders.”
Participants were required to purchase investment packages using cryptocurrency, a strategy that gave the illusion of modern fintech sophistication while masking the lack of actual investment operations.
Lavish Promotions and Social Media Marketing Used as Bait
The Justice Department highlighted the use of extravagant global events and social media tactics to market the scam. Among the most notable incidents was the projection of the OmegaPro logo on the Burj Khalifa in Dubai in 2022, a move intended to lend credibility to the operation.
The accused promoters also flaunted luxury vacations, high-end vehicles, and designer merchandise on social media to build a false image of financial success and legitimacy.
Investors Locked Out After Claimed “Network Hack”
In January 2023, OmegaPro claimed that it had been the victim of a network hack. The firm told investors their funds were safe and were being transferred to a new platform, Broker Group. However, prosecutors allege that no investor was able to recover their funds from either entity.
The DOJ believes that funds were instead laundered through cryptocurrency wallets controlled by insiders.
Serious Charges and Potential Prison Time
Both Sims and Reynoso have been charged with wire fraud conspiracy and money laundering conspiracy, each carrying a maximum sentence of 20 years in prison. If convicted on both counts, they could each face up to 40 years behind bars.
In a related case, OmegaPro co-founder Andreas Szakacs was arrested in Turkey in July 2024, accused of defrauding investors out of $4 billion. He has denied the allegations.
Final Thoughts
The case against OmegaPro’s promoters underscores the ongoing risks of high-yield crypto investment schemes, particularly those using multi-level marketing and influencer tactics. As regulators increase scrutiny of such platforms, investors are urged to exercise caution, conduct due diligence, and be wary of guaranteed returns in any investment offer.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.