Two Charged in $650 Million Global Crypto Scam that Promised 300% Returns
Federal prosecutors have charged two men in connection with a sprawling cryptocurrency investment scheme that defrauded victims out of more than $650 million, making it one of the largest such scams to hit the global market. The indictment, unsealed in the District of Puerto Rico, accuses Michael Shannon Sims, 48, of Georgia and Florida, and Juan Carlos Reynoso, 57, of New Jersey and Florida, of operating and promoting OmegaPro, an international crypto multi-level marketing scheme that promised investors 300% returns over 16 months through foreign exchange trading.
"This case exposes the ruthless reality of modern financial crime," said Guy Ficco, the Internal Revenue Service's Chief of Criminal Investigations. "OmegaPro promised financial freedom but delivered financial ruin." The investigation revealed that Sims, Reynoso, and their co-conspirators allegedly lured thousands of victims worldwide to purchase "investment packages" using cryptocurrency, falsely claiming the funds would be safely managed by elite forex traders.
Prosecutors alleged that the pair flaunted their wealth through social media and extravagant events — including projecting the OmegaPro logo onto the Burj Khalifa, Dubai's tallest building — to convince investors the operation was legitimate. A video posted to the company's LinkedIn page shows guests in evening attire posing for photos and watching the spectacle in Dubai.
In reality, authorities allege that OmegaPro was a pyramid-style fraud. When the company later claimed it had suffered a hack, the defendants told victims they had transferred their funds to a new platform called Broker Group, which users were never able to withdraw from. The two men face charges of conspiracy to commit wire fraud and conspiracy to commit money laundering, each carrying a maximum sentence of 20 years in prison.
How the Scam Unfolded
From 2019 to 2023, Sims and Reynoso allegedly convinced thousands of victims worldwide to invest their cryptocurrency in OmegaPro. The company promised investors that their funds would be managed by elite forex traders, with returns of up to 300% over a period of 16 months.
The alleged scheme was designed as a multi-level marketing model, where existing investors were incentivized to recruit new victims, creating a pyramid structure that eventually collapsed under its own weight. The company's promise of high returns and the prospect of financial freedom lured many unsuspecting investors into buying "investment packages" using cryptocurrency.
The Role of Social Media
Sims and Reynoso used social media platforms to flaunt their wealth and promote OmegaPro to potential investors. They claimed that the company was a legitimate investment opportunity, and that they were managing millions of dollars in investments for clients around the world.
However, behind the scenes, authorities allege that OmegaPro was using tactics to convince investors to put their money into the company. The pair projected the OmegaPro logo onto the Burj Khalifa, Dubai's tallest building, to demonstrate their success and legitimacy to potential investors.
The Investigation
The investigation into OmegaPro was led by a multiagency team, including the Justice Department, FBI, IRS-Criminal Investigation, and Homeland Security Investigations. They were assisted by international partners in tracking down Sims and Reynoso and gathering evidence of their involvement in the scam.
The authorities said that users of OmegaPro were never able to withdraw their money from either platform, even after being told that it had suffered a hack. The two men face charges of conspiracy to commit wire fraud and conspiracy to commit money laundering, each carrying a maximum sentence of 20 years in prison.