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

In a significant development in the world of cryptocurrency fraud, Andreas Szakacs, co-founder of the now-defunct crypto and forex platform OmegaPro, was apprehended in Turkey in July. This arrest came amid serious allegations that he masterminded a $4 billion Ponzi scheme. The case has captured global attention, shedding light on the ongoing battle against crypto fraud and highlighting the complexities involved in these deceptive schemes.

OmegaPro, founded in 2019 and headquartered in Dubai, promised investors substantial returns through its “automated trading” algorithm. The platform attracted a considerable user base by initially providing small, rapid returns on investments. However, the scheme took a darker turn as it began to demand more significant investments. Users soon found themselves unable to withdraw their funds as their accounts were locked, signaling the beginning of OmegaPro’s downfall.

The company’s collapse was marked by a sudden halt in withdrawals around November 22, 2022, coinciding with the broader collapse of the crypto exchange FTX. Prior to this, OmegaPro faced regulatory scrutiny and fraud warnings from several countries, including France, Belgium, Spain, and Peru.

Szakacs’s Arrest and the Allegations

Andreas Szakacs, who had changed his name to Emre Avci after moving to Turkey, faces accusations of defrauding investors through OmegaPro. Turkish authorities have charged him with orchestrating a scheme that promised high returns but ultimately led to significant financial losses for investors. According to reports, Szakacs accumulated a substantial amount of investor funds before locking their accounts and ceasing withdrawals.

His arrest followed a tip-off on June 28 from an anonymous informant, which was later confirmed by Dr. Abdul Mohaghegh, a Dutch national representing 3,000 investors who collectively lost $103 million. Despite Szakacs’s denial of the charges, the evidence against him has led to a high-profile legal battle.

In their investigation, Turkish authorities seized various items from Szakacs, including computers, mobile devices, and 32 crypto cold wallets. Although Szakacs did not assist in accessing these wallets, investigators managed to trace over $160 million in transactions linked to OmegaPro.

The case has drawn comparisons to the infamous OneCoin fraud, with investigators believing that OmegaPro’s operations might be closely related to the $4 billion scam perpetrated by OneCoin. This connection underscores the pervasive nature of crypto fraud and the challenges in tracking and recovering stolen funds.

U.S. Involvement and Rewards

The U.S. Department of State has increased its reward for information leading to the arrest and conviction of OneCoin’s founder, Ruja Ignatova. On June 26, the reward was raised to $5 million, reflecting the importance of apprehending key figures involved in major crypto scams.

The arrest of Andreas Szakacs and the subsequent investigation into OmegaPro highlight the complex and evolving nature of cryptocurrency fraud. As authorities continue to unravel the details of this massive Ponzi scheme, the case serves as a stark reminder of the need for vigilance and regulatory oversight in the rapidly expanding world of digital finance. The fight against crypto fraud is ongoing, and efforts to track down perpetrators and recover stolen assets remain crucial in maintaining the integrity of the financial system.

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1 BITCOIN= $109,613.00