Last month, Andreas Szakacs, co-founder of the cryptocurrency platform OmegaPro, was arrested in Turkey on charges of participating in a $4 billion Ponzi scheme.
Arrest and Allegations
Andreas Szakacs, a Swedish citizen who later became a Turkish national and changed his name to Emre Avci, denies the allegations. During the arrest, the Turkish gendarmerie confiscated computers and 32 cold wallets, though Szakacs did not provide the passwords. Nevertheless, authorities were able to trace cryptocurrency transactions amounting to $160 million.
Scale of Financial Loss
OmegaPro began shutting down user accounts on November 7, 2022, and ceased withdrawals by November 22, around the same time the crypto exchange FTX collapsed. The platform had been flagged by regulators in several countries, including France, Belgium, Spain, and Argentina, for potential fraud. This followed a tip-off from an anonymous informant on June 28. Abdul Ghaffar Mohaghegh, a Dutch national, provided a statement to the gendarmerie, claiming he lost $7 million and represented 3,000 investors who collectively lost $103 million.
Defense of the Accused
In his defense, Szakacs claimed that OmegaPro went bankrupt in late 2022, leading to significant losses for him and his team. He asserted that they compensated many victims before the bankruptcy. Szakacs also stated that he earned $100,000 monthly through his work in finance and marketing and that he acquired Turkish citizenship through construction investments. Despite his defense, the Beykoz Criminal Court of Peace ordered his arrest on July 10 on fraud charges, and the investigation is ongoing.
Szakacs remains under arrest on fraud charges as the investigation continues.
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