Horst Jicha, a German citizen accused of masterminding a $150 million cryptocurrency fraud scheme, has become a fugitive after failing to appear at a scheduled court hearing in Brooklyn, New York. Jicha, who was under home detention in New York City, had previously secured his release on a $5 million bond supported by his domestic partner and children.
Trial Scheduled for March 31
The courts had set a trial date for March 31, but Jicha’s absence from a pretrial hearing has prompted the Brooklyn US attorney’s office to launch an active search for him. As John Marzulli, a spokesperson for the office, stated, efforts are underway to capture Jicha. In response to his disappearance, prosecutors are not only attempting to forfeit the bond but also aiming to recoup the $4 million portion guaranteed by Jicha’s family, who reside in Germany.
Concerns about Jicha’s compliance with court conditions arose after he allegedly tampered with his ankle monitor on October 3. Pretrial Services directed him to visit their office the following day to address the malfunction, but he failed to comply. Facing multiple charges of securities fraud and conspiracy linked to a multi-level marketing scheme known as USI Tech, Jicha’s trial remains set for March 31.
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The Intricate Web of Jicha’s Crypto Fraud Scheme
Prosecutors allege that Jicha deceived retail investors by promising average returns of 140% over a period of 140 days. He enticed investors with the prospect of profiting through investments in supposed Bitcoin (BTC) mining and trading operations and by recruiting others to purchase USI Tech products. However, investigators contend that the platform was merely a “façade,” with Jicha ultimately diverting millions in investor funds for personal gain.
FBI Assistant Director James Smith stated in January that Jicha “stole millions of his investors’ money and fled the country” once the scheme began to unravel. Despite ongoing efforts to locate him, Jicha’s current whereabouts remain unknown. Court records indicate that prior to his arrest in Florida in late 2023, he had lived in both Brazil and Spain.
Released on bond in January under stringent conditions, Jicha was required to remain in New York City or Long Island and surrender all travel documents. His partner, Ewa Jicha, was designated as his custodian, responsible for reporting any breaches of his release conditions.
Implications of the USI Tech Scheme
Initiated in Europe and marketed in the United States starting in 2017, the USI Tech scheme has been characterized as a “multilevel marketing operation” that depended on continually recruiting new investors to sustain returns for earlier participants. Following regulatory scrutiny, USI Tech ceased its US operations in early 2018, leaving investors unable to access their funds and resulting in significant financial losses.
Reports suggest that much of the missing money from the crypto scheme, estimated at $150 million at the time of Jicha’s arrest, was held in digital assets such as Ethereum (ETH) and Bitcoin. These assets were reportedly transferred to digital wallets controlled by Jicha after the company ceased operations.
As of current market trends, BTC, the largest cryptocurrency, is trading at $62,730, reflecting ongoing interest and volatility in the crypto market.
