On July 8, 2025, U.S. authorities officially charged two individuals for their roles in a $650 million crypto scam involving the investment platform OmegaPro. The Department of Justice revealed that Michael Shannon Sims and Juan Carlos Reynoso allegedly defrauded thousands of investors worldwide by promising unrealistic returns through foreign exchange trading.
According to Justice.gov, the scheme operated from 2019 to 2023 and used deceptive marketing tactics to lure victims into purchasing “investment packages” with cryptocurrency. The founders claimed these packages would yield 300% returns in just 16 months, a promise that turned out to be false.
How the $650 Million Crypto Scam Unfolded
The $650 million crypto scam was structured as a multi-level marketing (MLM) scheme. OmegaPro promoted itself as a legitimate enterprise, even projecting its logo onto the Burj Khalifa in Dubai to impress potential investors. Lavish events, luxury cars, and designer goods were flaunted on social media to build trust and credibility.
However, behind the scenes, funds were being funneled into crypto wallets controlled by insiders. When OmegaPro claimed a network hack in early 2023, victims were told their money was being transferred to a new platform called Broker Group. Unfortunately, users were unable to withdraw funds from either platform.
Legal Action and Global Impact of the $650 Million Crypto Scam
The indictment charges Sims and Reynoso with conspiracy to commit wire fraud and money laundering, each carrying a maximum sentence of 20 years in prison. Authorities from the FBI, IRS-CI, and Homeland Security Investigations collaborated internationally to bring the case forward.
“As alleged, the defendants preyed upon vulnerable individuals in the U.S. and abroad, defrauding them of over $650 million by making false promises of substantial returns and that their money was safe,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division.
“The Criminal Division is committed to prosecuting these bad actors and pursuing justice for their many victims. Thanks to the dedicated work of our multiagency and international law enforcement partners, we are leading efforts to combat these complex and insidious digital asset investor scams.”
