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OmegaPro Co-Founder Arrested in Turkey for Alleged $4 Billion Crypto Ponzi Scheme

99bitcoins99bitcoins2024/08/23 15:49
By:Ruholamin HaqshanasSam Cooling

Andreas Szakacs, co-founder of the now-defunct OmegaPro platform, was arrested in Turkey in July. Szakacs is facing serious allegations of defrauding investors in what authorities believe to be a $4 billion Ponzi scheme.

According to reports from Turkish media on August 22, Szakacs is accused of luring investors with promises of substantial returns through OmegaPro’s “automated trading” algorithm.

The scheme allegedly involved accumulating investor funds, only to eventually lock their accounts, preventing them from withdrawing their investments.

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Szakacs Arrested After a Tip-Off

Szakacs, originally from Sweden, reportedly changed his name to Emre Avci after moving to Turkey. He has denied all allegations against him. His arrest followed a tip-off on June 28 from an anonymous informant, which was later confirmed by Dutch national Abdul Mohaghegh.

Mohaghegh claims to represent 3,000 investors who collectively lost $103 million due to OmegaPro’s activities.

OMEGAPRO’S $4B SCAM: THE SCOOP

Andreas Szakacs, the guy behind OmegaPro, got busted in Turkey.

OmegaPro promised insane returns through its “automated trading,” but it’s really a $4 billion Ponzi scheme.

Accounts locked, withdrawals stopped, and $160 million in shady… pic.twitter.com/Wffut4OZFL

— Mario Nawfal’s Roundtable (@RoundtableSpace) August 23, 2024

OmegaPro, founded in 2019 and based in Dubai, was a crypto and forex investment company that promised returns of up to 300% on its paid investment products.

Investors initially saw quick returns on small investments, which led many to reinvest larger sums. However, these accounts were eventually locked, and the company began shutting down accounts on November 7, 2022, halting all withdrawals by November 22—coinciding with the collapse of the crypto exchange FTX.

Before its downfall, OmegaPro had already drawn regulatory scrutiny. Several countries, including France, Belgium, Spain, and Peru, had issued fraud warnings about the platform.

The company mainly targeted users outside of the United States, raising suspicions among international regulators.

Following Szakacs’ arrest, Turkish authorities seized computers, mobile devices, and 32 cryptocurrency cold wallets. Although Szakacs reportedly withheld information necessary to access the wallets, Turkish police managed to trace over $160 million in transactions.

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OmegaPro’s Funds May be Connected to OneCoin Scheme

Investigators suspect that OmegaPro’s funds may be connected to the notorious OneCoin crypto fraud scheme, which also defrauded investors of $4 billion. OneCoin, founded in 2014, was exposed as a fraudulent operation in 2015, leading to the prosecution of several key figures involved in the scheme.

In the United States, law enforcement agencies have been actively pursuing individuals connected to OneCoin. Notably, Ruja Ignatova, the founder of OneCoin, remains at large.

The U.S. Department of State recently increased the reward for information leading to her arrest to $5 million, a significant increase from the previous $250,000 reward.

As reported, illicit blockchain activity declined by nearly 20% year-to-date, signaling a positive shift for the cryptocurrency sector. However, certain types of cybercrime, such as stolen funds and ransomware inflows, have been on the rise.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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