US Prosecutors Charge Two in $650 Million OmegaPro Crypto Fraud, Exposing Global MLM Scam

The Department of Justice (DOJ) unsealed an indictment in Puerto Rico against Michael Shannon Sims, identified as an OmegaPro founder and promoter, and Juan Carlos Reynoso, who allegedly led the company’s Latin American operations. Prosecutors claim the pair orchestrated a multilevel marketing (MLM) scheme from 2019 to 2023, selling “investment packages” that promised up to 300% returns in 16 months through supposed foreign exchange trading by “elite traders”.

Two charged in $650 million global crypto scam that promised 300% returns https://t.co/ESKEtrPxiT

— CNBC (@CNBC) July 8, 2025

According to the DOJ, OmegaPro targeted vulnerable individuals in the US and abroad, urging them to buy packages using cryptocurrency. The company staged lavish promotional events worldwide, including projecting its logo on Dubai’s Burj Khalifa. Sims and Reynoso flaunted luxury cars, designer goods, and expensive holidays on social media to reinforce OmegaPro’s image as a legitimate path to wealth.

In January 2023, OmegaPro claimed it had suffered a network hack and informed clients that their funds would be transferred to a new platform, Broker Group. However, prosecutors allege investors were unable to access their funds on either platform, as the money was laundered through crypto wallets controlled by insiders.

Both Sims and Reynoso face charges of wire fraud conspiracy and money laundering conspiracy, each carrying a maximum penalty of 20 years in prison. The case highlights the ongoing risks in the crypto sector, where high-yield promises and aggressive marketing can mask fraudulent operations.

OmegaPro’s co-founder, Andreas Szakacs, was arrested in Turkey in July 2024 over separate allegations of defrauding investors out of $4 billion, which he denies.

The Ontario Securities Commission (OSC) is sounding the alarm about a significant increase in cryptocurrency fraud throughout Canada. According to a report by The Globe and Mail, scammers are now using artificial intelligence to defraud unsuspecting investors.

During the Commission’s annual event on Thursday, OSC Chief Executive Grant Vingoe cautioned that crypto-related fraud is on the rise. He noted that malicious actors are utilizing deepfake technology and fraudulent trading platforms to exploit existing regulatory gaps.

 

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