Horst Jicha, a German citizen accused of orchestrating a $150 million crypto fraud scheme, has become a fugitive after failing to appear in a federal court in Brooklyn.
Jicha was reportedly under house arrest in New York City, after securing a $5 million bond guaranteed by his domestic partner and children.
Trial set before March 31
According to one report from CNBC, Jicha was expected in court for a hearing, but he failed to show up, prompting the U.S. attorney’s office in Brooklyn to launch a search for him. “There is a very active investigation underway to arrest him,” said John Marzulli, a spokesman for the office.
In addition to seeking to forfeit the bond, prosecutors want to recover the portion of $4 million that was “personally guaranteed” by Jicha’s partner and relatives, all of whom live in Germany.
Jicha is suspected of tampering with his ankle monitor on October 3, raising concerns about his compliance with the court’s conditions of release. Pretrial Services instructed him to visit their office the day after the device malfunctioned, but he did not show up.
Jicha faces multiple charges of securities fraud and conspiracy in connection with a multi-level marketing scheme known as USI Tech and is scheduled for trial on March 31.
Crypto linked to Jicha’s fraudulent scheme
Prosecutors further allege that he deceived private investors by promising 140% average returns over 140 days, claiming they could make profits from investing in alleged Bitcoin (BTC) mining and mining. trading activitiesbut also by recruiting others to purchase USI Tech products.
However, investigators claim the platform was a “façade,” with Jicha ultimately siphoning off millions in investor funds.
FBI Assistant Director James Smith said in January that Jicha “stole millions of money from his investors and fled the country” after the scheme began to unravel. Currently, 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 in January under strict conditions, including remaining in New York City or Long Island and surrendering all travel documents. His partner, Ewa Jicha, acted as his custodian and was responsible for reporting any violations of his release conditions.
The USI Tech program, launched in Europe and marketed in the United States starting in 2017, is described as a “multi-level marketing operation” that relied on recruiting new investors to maintain returns from previous investors.
After being confronted regulatory oversightUSI Tech shut down its US operations in early 2018, leaving investors without access to their funds, resulting in significant financial losses.
According to the report, much of the missing money from the crypto scheme, estimated at $150 million at the time of Jicha’s arrest, was allegedly 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 cryptocurrency on the market, is trading at $62,730.
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