Federal prosecutors have indicted two men concerning a massive cryptocurrency investment fraud scheme that defrauded victims out of more than $650 million. Unsealed in the District of Puerto Rico, the indictment accuses Michael Shannon Sims, 48, of Georgia and Florida, and Juan Carlos Reynoso, 57, of New Jersey and Florida, of operating and promoting OmegaPro. This global crypto-based multi-level marketing operation promised investors up to 300% returns over 16 months through foreign exchange trading. “This case exposes the ruthless reality of modern financial crime,” said Guy Ficco, Chief of Criminal Investigations at the Internal Revenue Service. “OmegaPro promised financial freedom but delivered financial ruin.” Between 2019 and 2023, Sims, Reynoso, and other co-conspirators allegedly convinced thousands of victims worldwide to purchase crypto-based “investment packages,” falsely claiming the funds would be safely managed by elite forex traders, according to the Department of Justice. Prosecutors say the pair flaunted their lavish lifestyles online and hosted glitzy events to build investor trust — including one in Dubai where the OmegaPro logo was projected onto the Burj Khalifa, the world’s tallest skyscraper. A video posted on the company’s LinkedIn page shows attendees dressed in formal attire celebrating under the spectacle. The case underscores ongoing federal efforts to crack down on crypto fraud and multi-level marketing abuses in the digital asset space. Authorities say OmegaPro was a pyramid-style fraud disguised as a legitimate investment opportunity. After the firm claimed to have been hacked, the defendants told victims their funds had been moved to a new platform called Broker Group, according to the Department of Justice. However, users could never withdraw their money from OmegaPro or Broker Group. Sims and Reynoso now face charges of conspiracy to commit wire fraud and conspiracy to commit money laundering, each carrying a maximum sentence of 20 years in prison. The multiagency investigation was led by the Justice Department, FBI, IRS-Criminal Investigation, and Homeland Security Investigations, with assistance from international law enforcement partners. Cold-call crypto conmen jailed for $2M fraud in UK crackdown In another case, UK authorities have sentenced two men to prison for orchestrating a fraudulent cryptocurrency scheme that targeted 65 victims through cold calls. Raymondip Bedi and Patrick Mavanga posed as representatives of fake crypto consultancy firms, convincing individuals to invest in bogus ventures. Judge Martin Griffiths at Southwark Crown Court said the duo “conspired to drive a coach and horses through the regulatory system.” Operating between 2017 and 2019 under company names like CCX Capital and Astaria Group LLP, the pair defrauded victims of approximately $2.03 million (£1.5 million). Both Bedi and Mavanga pleaded guilty to multiple charges, including fraud, money laundering, and possessing false identification documents. Mavanga also received a separate conviction for perverting the course of justice after he was found to have deleted phone recordings linked to the scheme. Elliptic unveils key tools to help compliance teams combat $9.3B crypto scam surge Scams have rapidly become one of the most lucrative forms of illicit activity in the crypto space. According to the FBI, US citizens lost a staggering $9.3 billion to cryptocurrency scams in 2024 alone. As these schemes grow increasingly sophisticated and industrialized, they present mounting challenges for virtual asset compliance teams working to safeguard users and uphold platform integrity. Elliptic’s newly released report, “The State of Crypto Scams 2025,” offers a deep dive into the ever-changing landscape of crypto fraud. The report analyzes eleven increasingly prevalent scam typologies, equipping risk management and compliance professionals with vital insights to recognize and mitigate emerging threats. Designed as a practical guide, the report highlights how Elliptic’s blockchain analytics solutions are uniquely positioned to assist in combating scams. Enhanced capabilities include cross-chain risk detection and the automated behavioral identification of scammer wallets—key tools for proactively disrupting fraudulent activity. With these advancements, Elliptic enables compliance teams to significantly scale their efforts in detecting and responding to crypto scam risks, helping to stay one step ahead of cybercriminals in an increasingly complex threat environment. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
