Summary:
Andreas Szakacs, OmegaPro co-founder, arrested in Turkey for alleged $4 billion Ponzi scheme.
$160 million in cryptocurrency tracked by Turkish authorities from seized wallets.
OmegaPro collapsed in late 2022 amid regulatory warnings from multiple countries.
Arrest followed a tip-off from an investor claiming $7 million loss in the scheme.
Szakacs faces charges of fraud using financial systems.
Arrest of OmegaPro Co-Founder
Andreas Szakacs, co-founder of OmegaPro, has been arrested in Turkey amid allegations of operating a $4 billion Ponzi scheme related to cryptocurrency. Reports from Turkish media indicate that Szakacs, who had changed his name to Emre Avci after acquiring Turkish citizenship, has denied the accusations, claiming his work was in finance and marketing.
Authorities Crack Down
The Turkish authorities conducted an extensive investigation, leading to the seizure of 32 cold wallets and computers. Although Szakacs did not disclose the passwords for these devices, authorities managed to trace $160 million in cryptocurrency transactions.
The Collapse of OmegaPro
OmegaPro reportedly collapsed in late 2022, coinciding with the downfall of the FTX crypto empire. Prior to its collapse, regulatory warnings had been issued about the company from various countries, including France, Belgium, Spain, and Argentina. The company did not target U.S. customers.
Investigation Triggered by Investor Claims
The arrest followed a tip-off from an anonymous informant on June 28. A Dutch national, Abdul Ghaffar Mohaghegh, claimed he lost $7 million in the scheme and represented 3,000 investors who collectively lost $103 million.
Details of the Arrest
Szakacs was apprehended on July 9 after raids at two villas in Beykoz, Istanbul. He faces charges of fraud using information systems and financial institutions as tools. This incident underscores the growing scrutiny and regulatory actions against fraudulent activities in the crypto space.
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