Horst Jicha, a German national accused of orchestrating a $150 million cryptocurrency fraud scheme, became a fugitive after failing to appear in federal court in Brooklyn.
Jicha was reportedly under house arrest in Recent York after securing $5 million bail guaranteed by his partner and children.
The trial is scheduled for March 31
According to A report from CNBC Jicha was scheduled to appear in court for a pretrial hearing but failed to show, prompting the U.S. attorney’s office in Brooklyn, U.S. to launch a search. “There is a very active investigation underway to capture him,” said John Marzulli, a spokesman for the bureau.
In addition to waiving bail, prosecutors are seeking to recover part of the $4 million that was “personally guaranteed” by Jicha’s partner and family members who live in Germany.
Jicha is suspected of tampering with his ankle monitor on October 3, raising concerns about his monitor compatibility with court conditions of release. Pretrial Services sent him an order to visit their office the day after the device failed, but he did not show up.
Facing multiple securities fraud and conspiracy charges related to the multi-level marketing scheme known as USI Tech, Jicha’s trial is scheduled for March 31.
Cryptocurrencies linked to Jicha’s fraudulent scheme
Prosecutors further allege that he misled retail investors by promising an average rate of return of 140% over 140 days, claiming that they could profit from their investments in alleged Bitcoin (BTC) mining and commercial operationsand by recruiting others to purchase USI Tech products.
But investigators say the platform was a “facade” and Jicha ultimately siphoned off millions in investor funds.
FBI Deputy Director James Smith said in January that Jicha “stole millions of his investors’ money and fled the country” as the scheme began to come to airy. Jicha’s whereabouts are unknown at this time, although court records show he previously lived in Brazil and Spain before his arrest in Florida in tardy 2023.
Jicha was released on bail in January under strict conditions that included remaining in Recent York or Long Island and submitting all travel documents. His partner, Ewa Jicha, served as a probation officer, responsible for reporting any violations of the terms of his release.
The USI Tech program, launched in Europe and sold in the United States since 2017, was described as a “multi-level marketing operation” that recruited modern investors to maintain profits from previous investments.
After facing it regulatory controlUSI Tech ceased operations in the US in early 2018, preventing investors from accessing its funds and causing significant financial losses.
According to the report, most 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 ceased operations.
At the time of writing, the price of BTC, the largest cryptocurrency on the market, is $62,730.
Featured image from DALL-E, chart from TradingView.com
