Allegations and Arrest

Andreas Szakacs, the co-founder of the now-collapsed crypto and forex platform OmegaPro, found himself in hot water in July. Turkish authorities arrested him for defrauding investors through a $4 billion crypto Ponzi scheme.

According to an August 22 report from local Turkish media, Szakacs is accused of duping investors by offering huge returns through OmegaPro's so-called 'automated trading' algorithm. Instead of delivering on these promises, he allegedly accumulated their funds before locking their accounts.

A Tale of Two Identities

Szakacs, a Swedish citizen, tried to reinvent himself after relocating to Turkey and changing his name to Emre Avci.

Despite the name change, he has staunchly denied the allegations against him. His arrest came on the heels of a tip-off from an anonymous informant on June 28, which Dutch national Dr. Abdul Mohaghegh later corroborated. Dr. Mohaghegh claims to represent 3,000 investors who collectively lost $103 million to OmegaPro.

How OmegaPro Operated

Founded in 2019 and headquartered in Dubai, OmegaPro was marketed as a lucrative crypto and forex investment company. It offered investors returns of up to 300% on its suite of paid investment products.

Users initially saw quick returns on small investments, which encouraged further investment. However, the tide turned when user accounts were abruptly locked.

The company began shutting down accounts on November 7, 2022, halting withdrawals by November 22, when the crypto exchange FTX imploded.

'Several jurisdictions, including France, Belgium, Spain, and Peru, had issued regulatory fraud warnings concerning the platform before its collapse.'

The Investigation Unfolds

Turkish police seized computers, various mobile devices, and 32 crypto cold wallets. Despite Szakacs not providing any information that would allow authorities to access the wallets, Turkish police tracked over $160 million in transactions.

Local investigators believe OmegaPro's funds were closely linked to the infamous OneCoin crypto fraud scheme, which also fleeced investors of $4 billion. OneCoin, founded in 2014, was exposed as a fraudulent crypto scheme in 2015 and defrauded its investors from roughly $4 billion in assets.

The OneCoin Connection

OmegaPro's alleged link to OneCoin adds another layer to this complex saga. Several top members of OneCoin, including Ignatova's boyfriend Gilbert Armenta, lawyer Mark Scott, former head of legal and compliance Irina Dilkinska, co-founder Karl Sebastian Greenwood, and William Morro, have faced criminal prosecution in the US.

On June 26, the US Department of State increased the reward for any information leading to Ignatova's arrest and conviction to $5 million—a significant increase from the original $250,000 reward.

Conclusion

The arrest of Andreas Szakacs marks a significant chapter in the ongoing saga of fraudulent crypto schemes. As investigations continue, the extent of OmegaPro's damage and its connection to other notorious schemes like OneCoin will likely become more apparent.

For now, the crypto world watches closely, hoping for justice and more stringent regulations to prevent such large-scale frauds in the future.