German National Accused Of $150 Million Crypto Fraud Evades Capture | Bitcoinist.com

Horst Jicha, a German national charged with orchestrating a $150 million crypto fraud scheme, has become a fugitive after failing to appear in a Brooklyn federal court. 

Jicha was reportedly under home detention in New York City, having secured a $5 million bond guaranteed by his domestic partner and children. 

 Trial Set For March 31

According to a report from CNBC, Jicha was expected in court for a pretrial hearing but did not show up, prompting the Brooklyn US attorney’s office to initiate a search for him, “There’s a very active investigation underway to capture him,” said John Marzulli, a spokesman for the office. 

In addition to seeking to forfeit the bond, prosecutors aim to recover the $4 million portion that was “personally guaranteed” by Jicha’s partner and family members, all of whom reside in Germany.

Jicha is suspected of tampering with his ankle monitor on October 3, leading to concerns about his compliance with the court’s conditions for release. Pretrial Services had sent him a directive to visit their office the day after the device malfunctioned, but he failed to appear. 

Facing multiple charges of securities fraud and conspiracy related to a multi-level marketing scheme known as USI Tech, Jicha’s trial is scheduled for March 31. 

Crypto Linked To Jicha’s Fraudulent Scheme

Prosecutors further allege that he misled retail investors by promising average returns of 140% over 140 days, claiming that they could profit through investments in purported Bitcoin (BTC) mining and trading operations, as well as by recruiting others to buy USI Tech products. 

However, investigators assert that the platform was a “façade,” with Jicha ultimately siphoning off millions in investor funds.

FBI Assistant Director James Smith stated in January that Jicha “stole millions of his investors’ money and fled the country” after the scheme began to unravel. As of now, Jicha’s whereabouts are unknown, although court records indicate he previously lived in Brazil and Spain before his arrest in Florida in late 2023.

Jicha was released on bond in January under strict conditions, which included remaining in New York City or Long Island and surrendering all travel documents. His partner, Ewa Jicha, acted as his custodian, responsible for reporting any violations of his release conditions.

The USI Tech scheme, launched in Europe and marketed in the United States starting in 2017, has been described as a “multilevel marketing operation” that relied on recruiting new investors to sustain returns for earlier ones. 

After facing regulatory scrutiny, USI Tech ceased operations in the US in early 2018, leaving investors unable to access their funds and resulting in substantial financial losses.

Per the report, much of the missing money from the crypto scheme, estimated at $150 million at the time of Jicha’s arrest, was reportedly held in crypto assets such as Ethereum (ETH) and Bitcoin, which were transferred to digital wallets controlled by Jicha after the company’s operations ended.

At the time of writing, BTC, the largest crypto on the market, is trading at $62,730. 

Featured image from DALL-E, chart from TradingView.com