Two Men Charged in $650M Global Crypto Fraud Scheme

Federal prosecutors have indicted Michael Shannon Sims, 48, and Juan Carlos Reynoso, 57, for orchestrating a $650 million crypto investment scam through OmegaPro, an international pyramid scheme. The duo promised investors unrealistic returns of up to 300% in 16 months, leveraging forex trading claims. Their operation, active from 2019 to 2023, relied on lavish parties, social media hype, and even projecting OmegaPro's logo onto Dubai's Burj Khalifa to feign legitimacy.

Investigations reveal the funds were never traded. When OmegaPro allegedly faced a hack, the money was funneled to another fraudulent platform, Broker Group, leaving victims empty-handed. "This case exposes the ruthless reality of modern financial crime," said IRS Criminal Investigation's Guy Ficco. Both defendants face up to 20 years for wire fraud and money laundering.

The case mirrors a UK sentencing of two individuals in a $2 million cold-call crypto scam. Meanwhile, Elliptic reports a $9.3 billion surge in US crypto fraud in 2024, underscoring the need for investor vigilance and robust compliance tools.