U.S. federal authorities have indicted two men accused of orchestrating a massive cryptocurrency investment scam known as OmegaPro, which defrauded investors around the world out of more than $650 million. The scheme operated as a deceptive multi-level marketing system disguised as a legitimate investment opportunity promising returns of up to 300% within 16 months through forex trading.

The indicted individuals are Michael Shannon Sims (48) of Georgia and Florida and Juan Carlos Reynoso (57) of New Jersey and Florida. Prosecutors allege that they played key leadership roles in the OmegaPro operation, which lured victims globally with promises of high-yield crypto-based "investment packages."

Lavish Lifestyle and Spectacle as Bait

OmegaPro used high-production marketing and extravagant lifestyle displays to win investors' trust. On social media, the scammers flaunted luxury cars, hosted grand events, and even organized a spectacular gathering in Dubai, where the OmegaPro logo was projected onto the Burj Khalifa, the world’s tallest building. A video posted on the company's LinkedIn page showed participants in formal wear celebrating beneath the light display.

“OmegaPro promised financial freedom. In reality, it delivered financial ruin,” said Guy Ficco, head of IRS Criminal Investigation.

According to the indictment, victims were misled into believing their funds were being managed by elite forex traders. In truth, the operation functioned as a pyramid scheme, where returns were paid out using new investor money.

The Broker Group Switch: A Second Layer of Deception

After claiming the platform had been hacked, the OmegaPro team told investors their funds were transferred to a new platform called Broker Group. However, users were never able to withdraw their funds from either OmegaPro or Broker Group, exposing the second stage of the fraud.

Sims and Reynoso now face conspiracy charges for wire fraud and money laundering, each carrying a maximum penalty of 20 years in prison.

The investigation was led by the Department of Justice, FBI, IRS-CI, Homeland Security Investigations, and international law enforcement partners.

UK: $2 Million Phone-Based Crypto Scam Ends in Prison Sentences

In a separate case in the United Kingdom, Raymondip Bedi and Patrick Mavanga were sentenced to prison for defrauding 65 victims out of over $2 million through a phone-based crypto scam. They impersonated representatives of fake crypto advisory firms and convinced individuals to invest in non-existent opportunities.

Both men pleaded guilty to fraud, money laundering, and possession of false identification documents. Mavanga was also convicted of obstructing justice after deleting call recordings linked to the scam.

Judge Martin Griffiths of Southwark Crown Court said the pair had “driven a coach and horses through the regulatory system.” Between 2017 and 2019, they operated under the names CCX Capital and Astaria Group LLP, exploiting victims’ trust with false promises.

Report: Crypto Fraud in 2024 Surged to $9.3 Billion

A worrying trend was highlighted in a recent report by Elliptic, a blockchain analytics firm, which revealed that U.S. residents lost $9.3 billion to crypto scams in 2024 alone, making it one of the most profitable forms of illicit activity in the digital finance space.

The report, titled “The State of Crypto Scams 2025”, identifies 11 common fraud typologies and equips compliance and risk professionals with strategies to detect and mitigate emerging threats. Tools include cross-chain risk detection, behavioral wallet analysis, and automated alerts for suspicious activity.

With these advanced capabilities, Elliptic empowers compliance teams to better detect and disrupt fraud in real time, helping them stay one step ahead of cybercriminals in an increasingly complex threat landscape.



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