Horst Zicha, a German national accused of orchestrating a $150 million crypto fraud scheme, has become a fugitive after failing to appear in Brooklyn federal court.
Zicha was reportedly under house arrest in New York City, having secured a $5 million bond guaranteed by his domestic partner and children.
Trial set for March 31
according to a report From CNBC, Jicha was expected to come to court for a pre-trial hearing, but he did not appear, after which the Brooklyn US Attorney’s office began searching for him, “There is a very active investigation underway to capture him, ” said spokesman John Marzulli. Office.
In addition to seeking to seize the bonds, prosecutors aim to recover a portion of the $4 million that was “personally guaranteed” by Jicha’s partner and family members, all of whom live in Germany.
Zicha is suspected of tampering with his ankle monitor on October 3, raising concerns compliance With court conditions for release. Pretrial Services sent him instructions to come to their office the day after the device malfunctioned, but he failed to appear.
Jicha’s trial is scheduled for March 31, facing multiple charges of securities fraud and conspiracy related to a multi-level marketing scheme called USI Tech.
Crypto linked to Jicha’s fraud scheme
Prosecutors further allege that they misled retail investors by promising average returns of 140% over 140 days, claiming they could make profits through investments in purported Bitcoin (BTC) mining and business operationsAs well as by recruiting others to purchase USI Tech products.
However, investigators claim the platform was a “front”, with Jicha ultimately embezzling millions of investors’ funds.
FBI Assistant Director James Smith said in January that Jicha “stole millions of his investors’ money and fled the country” after the scheme was exposed. As of now, Jicha’s whereabouts are unknown, although court records show he lived in Brazil and Spain before his arrest in Florida in late 2023.
Jicha was released on bond in January under strict conditions, including living in New York City or Long Island and surrendering all travel documents. His partner, Ewa Jicha, acted as his guardian, responsible for reporting any violations of the conditions of his release.
The USI Tech scheme, launched in Europe and marketed in the United States in 2017, has been described as a “multi-level marketing operation” that recruits new investors to maintain returns for earlier investors. depends on.
after facing regulatory investigationUSI Tech ceased operations in the US in early 2018, leaving investors unable to access their funds and resulting in significant financial losses.
According to the report, the majority of the money missing from the crypto scheme at the time of Jicha’s arrest, an estimated $150 million, was allegedly held in crypto assets such as Ethereum (ETH) and Bitcoin, which were transferred. digital wallet The company was taken over by Jicha after it ceased operations.
At the time of writing, the largest crypto on the market, BTC, is trading at $62,730.
Display image from DALL-E, chart from tradingview.com
