Prosecutors Bring Down Major Crypto Scam: Michael Shannon Sims and Co-Founder Face $650 Million Fraud Charges

A sweeping federal investigation has culminated in the prosecution of two men behind one of the most audacious cryptocurrency investment schemes in recent history. Michael Shannon Sims and Juan Carlos Reynoso, who co-founded the deceptive platform OmegaPro, have been formally charged with orchestrating a fraud that bilked investors of more than $650 million over several years beginning in 2019.

The Scheme’s Anatomy

OmegaPro operated under false pretenses, guaranteeing returns as high as 300% within a 16-month window. The platform claimed to leverage elite traders operating in forex markets to generate these exceptional profits. However, the operation was entirely fabricated. Cryptocurrency deposits were funneled through wallets operated by insiders, with most capital flowing to top-tier promoters rather than legitimate investments.

To maintain the illusion of legitimacy, Sims and Reynoso orchestrated lavish promotional events across Latin America, Europe, and North America. They flooded social media with imagery of luxury vehicles, high-end fashion, and even arranged for the OmegaPro logo to be projected onto Dubai’s iconic Burj Khalifa—a theatrical move designed to cement perceived credibility among potential victims.

The Unraveling and Exit Strategy

As the unsustainable model began showing strain, the co-founders pivoted to a new deception. They attributed financial disruptions to a supposed network compromise, announcing a transition to an alternative platform called Broker Group. This restructuring narrative masked the true crisis: withdrawal functionality was terminated across both platforms, effectively trapping investor capital with no recovery mechanism.

Legal Consequences and Broader Implications

Both Michael Shannon Sims and Reynoso now face charges of wire fraud and money laundering—offenses carrying potential sentences up to 40 years imprisonment if convicted. This prosecution reflects intensifying global enforcement efforts. Parallel to the OmegaPro case, UK regulators recently secured a 12-year combined prison sentence against perpetrators of a comparable crypto fraud scheme that extracted approximately £1.5 million from victims through identical trust-exploitation tactics.

Officials from the U.S. Justice Department’s Criminal Division emphasized their commitment to dismantling what they characterize as “complex and insidious” digital asset scams. Prosecutors have vowed to continue pursuing those who weaponize cryptocurrency infrastructure to prey on unsuspecting investors, with accountability for victims remaining a central priority.