Horst Zicha, a German man accused of orchestrating a $150 million cryptocurrency fraud scheme, has become a fugitive after failing to appear in federal court in Brooklyn.
Jicha was reportedly held on home detention in New York City on a $5 million bail guaranteed by her domestic partner and children.
March 31st limited trial set
According to report CNBC reported that Jicha was scheduled to appear in court for a pretrial hearing but did not show up, so the Brooklyn U.S. Attorney’s Office launched a search and said it was “a very active investigation to arrest him.” is underway,” said spokesman John Marzulli. office.
In addition to forfeiting the bail money, prosecutors are also seeking to recover $4 million in “personal guarantees” made by Jicha’s partner and family, who live in Germany.
Jicha was suspected of tampering with his ankle monitor on October 3, raising concerns about his health. compliance Release subject to court conditions. Pretrial Services had sent him instructions to visit the office the day after the device malfunctioned, but he did not appear in court.
The trial for Mr. Jicha, who faces multiple charges of securities fraud and conspiracy in connection with the multi-level marketing scheme known as USI Tech, is scheduled for March 31.
Cryptocurrencies associated with Jicha fraud scheme
Prosecutors also allege that he defrauded retail investors by claiming they could make profits through investments purported to be Bitcoin (BTC) mining and promising returns of an average of 140% in 140 days. . trading operationsor by soliciting others to purchase USI Tech products.
But investigators say the platform was a “sham” and that Jicha ended up siphoning millions of dollars in investor funds.
FBI Assistant Director James Smith said in January that after the scheme began to unravel, Jicha “stole millions of dollars of investor funds and fled the country.” Jicha’s whereabouts are currently unknown, but court records show he lived in Brazil and Spain before his arrest in Florida in late 2023.
Jicha was released on bail in January under strict conditions, including remaining in New York City or Long Island and submitting all travel documents. His partner, Ewa Jicha, acted as his guardian and was responsible for reporting any violations of release conditions.
The USI Tech plan, launched in Europe and sold in the U.S. since 2017, is a “multi-level marketing operation” that relies on recruiting new investors to maintain returns from previous investors. It is being said.
After facing each other regulatory oversightUSI Tech ceased operations in the United States in early 2018, leaving investors unable to access their funds and suffering significant financial losses.
According to the report, much of the funds missing from the cryptocurrency scheme, estimated at $150 million at the time of Jicha’s arrest, were held in crypto assets such as Ethereum (ETH) and Bitcoin, which are It was reportedly stored in crypto assets such as Ethereum (ETH) and Bitcoin. digital wallet After the company ceases operations, it will be managed by Jicha.
As of this writing, BTC, the largest cryptocurrency on the market, is trading at $62,730.
Featured image from DALL-E, chart from TradingView.com