Key Insights:
- Andreas Szakacs, co-founder of OmegaPro, was arrested in Turkey, accused of orchestrating a $4 billion cryptocurrency Ponzi scheme.
- Authorities tracked over $160 million in transactions linked to OmegaPro, uncovering ties to the notorious OneCoin scam.
- The platform’s collapse impacted investors globally, with significant losses reported by thousands across multiple countries.
Turkish authorities have arrested Andreas Szakacs, co-founder of the now-defunct cryptocurrency platform OmegaPro. Szakacs, a Swedish national, is accused of masterminding a $4 billion Ponzi scheme that defrauded investors worldwide. The scheme involved OmegaPro’s “automated trading” algorithm, which promised enormous returns but instead led to frozen accounts and significant financial losses.
Anonymous Tip Leads to Arrest
The arrest followed an anonymous tip received on June 28, which was later confirmed by Dr. Abdul Ghaffar Mohaghegh, a Dutch citizen representing 3,000 investors who collectively lost $103 million. Mohaghegh, who claimed to have lost $7 million himself, provided crucial testimony that linked Szakacs to the massive fraud. Turkish authorities used this information to track down and detain Szakacs, who had relocated to Turkey under the alias Emre Avci.
Victim Testimonies and Investigation
Investigators uncovered a pattern of fraudulent activity through online complaint portals, identifying 16 Turkish victims who experienced similar losses. These individuals invested in OmegaPro through the “Omega Invest” app, initially seeing small returns that encouraged further investment. However, when they attempted to withdraw their funds, they found their accounts had been frozen, mirroring the experiences of international investors.
OmegaPro, established in Dubai in 2019, offered high-yield investment packages, some promising returns of up to 300%. The platform gained popularity, particularly outside the United States, despite several warnings from regulatory bodies in France, Belgium, Spain, and Peru. The company’s operations came to a halt in late 2022, coinciding with the collapse of the cryptocurrency exchange FTX. According to reports On November 22, 2022, OmegaPro stopped accepting withdrawals and began closing customer accounts, leaving many investors with significant losses.
Seizure of Assets and Financial Links
During the investigation, Turkish authorities seized 32 cryptocurrency cold wallets, mobile devices, and computers from Szakacs. While he refused to provide information to access the wallets, police tracked over $160 million in transactions related to OmegaPro. The investigation also revealed connections between OmegaPro’s finances and the infamous OneCoin scam, which defrauded investors of $4 billion globally.
The arrest of Andreas Szakacs marks a significant development in the ongoing fight against cryptocurrency fraud. As authorities continue to unravel the full extent of the OmegaPro scheme, investors worldwide await justice and potential recovery of their lost funds.
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