U.S. Charges Crypto Founders in $650 Million OmegaPro Scam

The United States authorities have unsealed criminal charges against two cryptocurrency entrepreneurs. The entrepreneurs are accused of scheming a global investment scam that defrauded thousands of people out of more than $650 million. The Department of Justice (DOJ) announced that Juan Carlos Reynoso and Michael Shannon Sims will face charges of wire fraud and money laundering. Both men were co-founders of the fraudulent platform OmegaPro. They are convicted, and they can face up to 40 years in prison for their crimes.

OmegaPro Founders Charged in the USA

Launched in 2019, OmegaPro claimed to be a high-yield crypto investment firm offering up to 300% returns within just 16 months. The company advertised that expert traders were generating large profits through forex markets, luring unsuspecting investors from across the world.

However, prosecutors allege that the entire operation was a scam. Investor funds, collected primarily in cryptocurrency, were funneled through wallets controlled by OmegaPro insiders. These funds were allegedly redistributed to top-level promoters to sustain the illusion of legitimacy and profitability, while the majority of users saw no returns.

To build credibility and attract new participants, Sims and Reynoso organized extravagant marketing events in Latin America, Europe, and the United States. They promoted the company with luxury vehicles, designer clothes, and social media campaigns. In one striking publicity stunt, the OmegaPro logo was projected onto Dubai’s iconic Burj Khalifa skyscraper.

The scheme began to unravel when OmegaPro abruptly ceased withdrawals, citing a so-called "network hack." Victims were told their assets were being transitioned to a new platform, “Broker Group,” as part of a restructuring process. In reality, the restructuring never occurred; users were locked out of their accounts, and their funds vanished from both platforms.

This case is one of the largest crypto fraud accusations in recent years and reflects the growing crackdown by financial regulators worldwide on illicit crypto activity.

“Fraudsters like Sims and Reynoso use flashy marketing and false promises to exploit people’s trust,” said the head of the Justice Department’s Criminal Division. He continued, “We are committed to dismantling these sophisticated scams and holding their perpetrators accountable.”

The announcement comes just days after a similar fraud case in the UK, where two men were sentenced to a total of 12 years in prison for promoting fake crypto investments. Officials there indicated that the program cost more than £1.5 million in losses for several victims.

Law enforcement organizations in the U.S. and other countries are still warning people about the risks of using digital asset platforms that aren't regulated. Officials stress the need for due diligence before putting money into any digital enterprise because Bitcoin frauds are on the rise.

The probe in OmegaPro is still ongoing. Authorities are asking further victims or those with knowledge to come forward.