Turkish Authorities Arrest Crypto Founder for $4 Billion Pyramid Scheme

Andreas Szakacs, a co-founder of the controversial crypto company OmegaPro, was apprehended in Turkey in July.

He faces allegations of orchestrating a pyramid scheme that defrauded investors of $4 billion, according to Turkish media sources.

Szakacs, originally from Sweden and now known as Emre Avcı after obtaining Turkish citizenship, has denied the charges, asserting that his involvement was limited to finance and marketing.

The arrest followed an anonymous tip on June 28. After Turkish authorities conducted raids on two villas in Istanbul’s Beykoz district, Szakacs was detained on July 9 and formally arrested the following day on charges related to fraud involving information systems and financial institutions.

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During the raids, authorities confiscated computers and 32 cold wallets, typically used for offline cryptocurrency storage. Although Szakacs did not disclose the passwords, investigators traced $160 million in cryptocurrency transactions.

OmegaPro’s downfall in late 2022, which coincided with the collapse of the FTX exchange, led to significant financial losses for investors worldwide.

Dutch national Abdul Ghaffar Mohaghegh, a key witness, reported losing $7 million in the scheme. He also claimed to represent 3,000 investors who collectively lost $103 million due to the alleged fraud.

Alexander Stefanov