OmegaPro Co-Founder Arrested Over Alleged $4B Crypto Scam

Andreas Szakacs, the co-founder of OmegaPro, was arrested in Turkey for his alleged role in the cryptocurrency Ponzi scheme, which scammed investors of $4 billion.

Founded in 2019, OmegaPro is a Dubai-based crypto and foreign exchange (FX) investment firm that promises investors up to 300% returns on their paid investment products.

However, the firm ceased all withdrawals in November 2022, almost simultaneously with FTX’s collapse. The platform shut down its entire operation by July 2023.

How it Happened

According to a report from local Turkish media, the investigation leading to the arrest began following an anonymous tip-off on June 28, which revealed Szakacs’s location.

The tip-off was confirmed by Abdul Ghaffar Mohaghegh, a Dutch national who was a victim of the scam himself. His testimony helped the authorities investigate the crypto ponzi scheme’s co-founder.

Mohaghegh stated that he invested $7 million in the OmegaPro Ponzi scheme and represented 3,000 other individuals who collectively lost over $100 million in the scam.

Apart from the tip-off and testimony from foreign victims, several local citizens also recounted fraudulent experiences with a crypto investment app called Omega Invest, an alleged subsidiary of the OmegaPro app.

Local victims claimed they made quick profits on small initial investments, followed by demands for more significant funds. However, the app ceased access when they tried to withdraw their investments.

While arresting the infamous co-founder, the Turkish authorities disclosed that they seized computers, various mobile devices, and 32 crypto cold wallets. Although Szakacs did not provide any information that would have allowed authorities to access the wallets, the report revealed that the Turkish police could track over $160 million in transactions.

OmegaPro’s $4B Crypto Ponzi Scheme

The OmegaPro scam was designed as a Ponzi or pyramid scheme. Money from new investors was distributed to old investors, offering an illusion of profitability.

The scheme involved accumulating investor funds to lock their accounts, preventing them from withdrawing their investment.

The platform allegedly lured victims by promising enormous profits using OmegaPro’s “automated trading” algorithm, which defrauded investors a whopping $4 billion.

Szakacs, who adopted the name Emre Avci after obtaining Turkish citizenship, has denied all allegations against him.