TechFlow news, October 11 — According to CNBC, John Marzulli, spokesperson for the Brooklyn U.S. Attorney's Office, confirmed that Horst Jicha, a German national accused of a $150 million cryptocurrency fraud scheme, has become a fugitive. Jicha had been under house arrest in New York City with a $5 million bail bond, but prosecutors allege he may have tampered with his electronic ankle monitor on October 3. After pretrial services detected anomalies, they emailed Jicha requesting an office visit the following day, which he failed to attend. Prosecutors said they will seize $4 million in bail funds secured by Jicha’s partner, children, and three other German residents. Law enforcement is now actively investigating Jicha’s whereabouts.
Jicha is charged with securities fraud and conspiracy related to the multi-level marketing scheme USI Tech. Prosecutors say he promised retail investors returns of 140% within 140 days. Investors could earn commissions through purported Bitcoin mining and trading operations, as well as by referring others to purchase USI Tech products. In January, FBI Assistant Director James Smith stated: “In reality, the platform was just a front. When problems arose, Jicha stole millions from investors and fled the country.” Prosecutors allege that after USI Tech abruptly halted its U.S. operations in early 2018, approximately $150 million worth of Ethereum and Bitcoin were transferred to cryptocurrency wallets controlled by Jicha.
