U.S authorities charge two crypto founders in $650 million scam

U.S. authorities have charged two men for running a crypto investment scam that defrauded thousands of investors.

According to an indictment unsealed on Monday, co-founders Michael Shannon Sims and Juan Carlos Reynoso launched the fake investment platform in 2019, ran the scheme for several years, and pulled in more than $650 million before it collapsed.

Called OmegaPro, the platform promised investors up to 300% returns in 16 months, claiming elite traders were generating profits through forex markets. The funds were collected in crypto, moved through wallets controlled by insiders, and then quietly paid out to top promoters.

To make the project appear legitimate and attract new investors, Sims and Reynoso held flashy events across Latin America, Europe, and the U.S. The pair promoted OmegaPro on social media with luxury cars and designer brands, and even projected the company’s logo onto the Burj Khalifa.

When the scheme started to collapse, the OmegaPro co-founders claimed it had suffered a network hack. Victims were told their funds were being moved to a new platform called Broker Group as part of restructuring efforts. In reality, withdrawals were cut off, and users lost access to their money on both platforms.

Both men are now facing charges of wire fraud and money laundering, with a maximum sentence of 40 years in prison each if convicted. The case, which marks one of the largest crypto fraud indictments in recent years, comes as global financial authorities step up efforts to shut down digital asset scams.

Just last week, the UK’s Financial Conduct Authority secured a combined 12-year prison sentence for two men behind a similar fraudulent scheme. In that case, the founders promoted fake crypto investment services, exploiting trust and bypassing regulatory safeguards. The scheme resulted in losses of about £1.5 million across multiple victims.

Commenting on the OmegaPro crackdown, the head of the U.S. Justice Department’s Criminal Division said authorities will continue going after crypto fraud schemes that prey on investors.

“We are leading efforts to combat these complex and insidious digital asset investor scams,” he said, adding that prosecutors remain committed to “pursuing justice for their many victims.”