Horst Jicha, a German national accused of orchestrating a $150 million cryptocurrency fraud, is now a fugitive after tampering with his ankle monitor on October 3 while on home detention in New York City. The U.S. Attorney's Office for the Eastern District of New York has launched an active investigation to recapture him. John Marzulli, a spokesperson for the Brooklyn U.S. attorney's office, told CNBC: There's a very active investigation underway to capture him.
The USI Tech Scheme: Promised 140% Returns in 140 Days
Jicha is accused of leading a multi-level marketing scheme called USI Tech, which falsely promised investors an average return of 140% within 140 days. According to the FBI, the platform was nothing but a facade. FBI Assistant Director James Smith stated in January: In reality the platform was just a facade, and when questions arose, Jicha stole millions of his investors' money and fled the country.
After USI Tech ceased operations, Jicha moved millions of dollars in cryptocurrency, including Ether and Bitcoin, to wallets he controlled.
Bond Forfeiture and Escape Details
Jicha was released on a $5 million bond, guaranteed by his domestic partner and children. Before disappearing, he ignored a request to visit Pretrial Services. Prosecutors have initiated bond forfeiture proceedings. Marzulli stressed: We are going to forfeit the bond.
The fugitive disappeared on the same day his ankle monitor stopped functioning, and he failed to appear in Brooklyn federal court.
Ongoing Investigation and Global Implications
The case underscores the difficulty of tracking white-collar criminals in the crypto space. Law enforcement agencies, including Interpol, are likely involved in a coordinated effort to locate Jicha. Investors are reminded to remain cautious about any crypto project promising guaranteed high returns, especially those relying on multi-level recruitment. The U.S. Department of Justice has vowed to hold accountable those who exploit the crypto ecosystem for fraud.