Andreas Szakacs, one of the founders of controversial cryptocurrency company OmegaPro, was arrested in Turkey in July for allegedly running a pyramid scheme that defrauded investors of $4 billion, according to multiple reports in the Turkish press.
Originally from Sweden, Szakacs reportedly changed his name to Emre Avcı after becoming a Turkish citizen. He denied the accusations, claiming he only worked in finance and marketing.
The arrest followed a tip-off from an anonymous informant on June 28. Following raids on two villas in the Beykoz district of Istanbul, Szakacs was detained on July 9 and arrested on July 10 on charges of “fraud using information systems, banks or credit institutions as a means.”
During the raids, Turkish authorities seized computers and 32 cold wallets, which are typically used to store cryptocurrencies offline.
Although Szakacs reportedly did not provide the passwords, investigators were able to track the movements of a total of $160 million in cryptocurrencies.
OmegaPro’s collapse in late 2022, which coincided with the collapse of cryptocurrency exchange FTX, left many investors around the world in financial ruin.
A key witness in the case, Dutch national Abdul Ghaffar Mohaghegh, told investigators he lost $7 million in the fraud scheme. Mohaghegh also claimed to have represented, through power of attorney, 3,000 affected investors who lost $103 million in the alleged fraud.
*This is not investment advice.
