Key Points
- Horst Jicha, former CEO of USI-Tech, allegedly tampered with his ankle monitor and absconded while under home detention for a $180 million cryptocurrency fraud case.
- Jicha was arrested in December 2023 after years of avoiding US authorities, and was set to face trial on March 31 for securities fraud and money laundering charges.
German National Flees After Posting $5 Million Bond
Horst Jicha, the 64-year-old former CEO of crypto mining and trading firm USI-Tech, has reportedly fled from home detention in New York, according to prosecutors. Jicha, who was facing charges related to an alleged $180 million cryptocurrency fraud scheme, is believed to have tampered with his ankle bracelet monitor on October 4, 2023.
The German national had been arrested on December 23, 2023, in Miami, Florida, during his first visit to the United States in over five years. Following his arrest, Jicha was placed under home detention in New York on a $5 million bond, which was guaranteed by his domestic partner and children. As part of his pretrial conditions, Jicha was also required to surrender his German passport.
John Marzulli, a spokesman for the Brooklyn US Attorney’s Office, told CNBC, “There’s a very active investigation underway to capture him.” The authorities were alerted approximately 12 hours after Jicha’s bracelet stopped working, and they immediately sought an arrest warrant for the fugitive.
The USI-Tech Scheme and Missing Cryptocurrency
Prosecutors allege that Jicha, through USI-Tech, promised investors a daily 1% return on their investments by participating in the company’s mining and trading scheme. The firm, supposedly founded in Europe in May 2017, was aggressively marketed to US investors later that year.
According to New York authorities, a staggering amount of cryptocurrency is missing from USI-Tech’s alleged fraud scheme:
- 1,774 Bitcoin (BTC)
- 28,589 Ether (ETH)
At current prices, these missing funds are valued at more than $180 million. Prosecutors claim that these funds were transferred to a crypto exchange deposit address controlled by Jicha.
The Rise and Fall of USI-Tech
USI-Tech’s operations came under regulatory scrutiny from US authorities shortly after its aggressive marketing push to American investors. In response to this pressure, the company abruptly shut down on January 8, 2018. USI-Tech blamed investors for making misleading comments about its products, leaving many unable to withdraw their funds from the company’s portal.
Jicha had previously fled the United States in 2018 after receiving cease-and-desist letters from US authorities. His recent arrest in December 2023 marked his first return to the country since then.
The case against Jicha was scheduled for trial on March 31, where he was set to face multiple charges, including securities fraud and money laundering conspiracy. However, with his recent escape, the future of the case remains uncertain as authorities continue their search for the fugitive.
As the investigation unfolds, investors and the cryptocurrency community alike will be watching closely to see if Jicha can be apprehended and brought to justice for his alleged role in this significant fraud scheme.
