Bitrabo Editorial
Horst Jicha, a German citizen accused of running a $150 million cryptocurrency fraud scheme, has become a fugitive after failing to appear in court in Brooklyn.
Jicha had been under home detention in New York City, having posted a $5 million bond that was backed by his partner and children.
Trial Scheduled for March 31
As reported by CNBC, Jicha was supposed to attend a pretrial hearing but did not appear, leading the prosecutor’s office to seek his capture. “There’s a very active investigation underway to capture him,” stated John Marzulli, spokesperson for the office.
Alongside efforts to reclaim the bond, prosecutors also aim to recover the $4 million guaranteed by Jicha’s partner and family members, who live in Germany.
On October 3, Jicha is believed to have tampered with his ankle monitor, raising alarms about his adherence to court-mandated release conditions. He was directed to check in with Pretrial Services the following day but failed to do so.
Facing numerous allegations of securities fraud and conspiracy linked to a multi-level marketing scheme called USI Tech, Jicha’s trial is set for March 31.
Crypto Involved in Alleged Fraud
Prosecutors allege that Jicha misled investors with promises of 140% returns over 140 days, claiming potential profits from investments in fictitious Bitcoin (BTC) mining and trading operations, as well as from recruiting others to buy USI Tech products.
However, investigators have labeled the scheme as a “façade,” with Jicha allegedly diverting millions of dollars from investors.
In January, FBI Assistant Director James Smith remarked that Jicha “stole millions of his investors’ money and fled the country” as the scheme began collapsing. Currently, Jicha’s location is unknown, although records show he had resided in Brazil and Spain prior to his arrest in Florida in late 2023.
He was released on bond in January with stringent conditions, including restrictions to New York City or Long Island and surrendering all travel documents. His partner, Ewa Jicha, was designated as his custodian and was responsible for reporting any breaches of his release conditions.
The USI Tech operation, which started in Europe and expanded into the United States in 2017, was characterized as a “multilevel marketing operation” that depended on the recruitment of new investors to generate returns for earlier ones.
Due to increased regulatory scrutiny, USI Tech halted its US operations in early 2018, leaving investors without access to their funds and resulting in significant financial losses.
It is reported that much of the missing funds from the crypto fraud, estimated at $150 million during Jicha’s arrest, were likely held in cryptocurrencies like Ethereum (ETH) and Bitcoin, which were transferred to wallets controlled by Jicha after the company’s closure.
As of now, Bitcoin, the leading cryptocurrency, is trading at $62,730.
Image courtesy of DALL-E, chart from TradingView.com