Horst Jicha skips bail in $150 million USI Tech crypto fraud case in New York

A German nationalist who was nether location detention successful New York City connected a $5 cardinal bond guaranteed by his home spouse and children successful a case successful which helium was charged with overseeing a $150 cardinal cryptocurrency fraud is present a fugitive.

"There's a precise progressive probe underway to seizure him," said John Marzulli, a spokesperson for the Brooklyn U.S. attorney's office, connected Friday, a time aft the defendant, Horst Jicha, failed to look successful Brooklyn national tribunal arsenic scheduled.

"We are going to forfeit the bond," Marzulli added, meaning that prosecutors volition question to get the $4 cardinal information of the enslaved that was personally guaranteed by Jicha's partner, children and 3 different people, each of whom unrecorded successful Germany.

Another $1 cardinal successful currency to unafraid the enslaved had been deposited with the national government.

Horst is suspected of having tampered with his ankle bracelet monitor connected Oct. 3, a authoritative from the Brooklyn U.S. attorney's bureau told a justice Thursday astatine a proceeding that was expected to code pretrial issues successful the case.

After noticing that Jicha's ankle bracelet was not working, Pretrial Services officials sent him an email directing him to sojourn their bureau the adjacent day. Jicha did not amusement up, the authoritative told U.S. District Court Judge Orelia Merchant.

Only past did Pretrial Services pass prosecutors that Jicha's ankle bracelet had ceased working, 26 hours aft becoming alert of that fact, the authoritative told the judge.

Jicha's defence lawyers did not instantly reply to a petition for comment.

CNBC has requested remark from Pretrial Services successful Brooklyn national court.

Jicha is scheduled to spell connected proceedings successful the lawsuit March 31, wherever helium faces aggregate charges of securities fraud and conspiracy related to a multi-level selling strategy known arsenic USI Tech.

According to prosecutors, Jicha lied to retail investors erstwhile helium told them they would marque an mean of 140% returns connected their wealth successful a 140-day period.

Investors were told that determination were 2 ways they could marque money: First, they could put successful what were purportedly bitcoin mining and trading operations. They could besides gain commissions for referring others to bargain USI Tech products, the indictment against Jicha says.

"In world the level was conscionable a facade, and erstwhile questions arose, Jicha stole millions of his investors' wealth and fled the country," FBI Assistant Director successful Charge James Smith said successful January.

As of Friday, Jicha's whereabouts were unknown. Court records amusement helium had lived successful Brazil and Spain earlier helium was arrested successful Florida successful precocious 2023.

Jicha was released connected enslaved successful January, and had lived successful Brooklyn.

Under the conditions of Jicha's release, helium was obligated to stay successful New York City oregon Long Island, and not to permission his location prevention for tribunal appearances, lawyer visits oregon aesculapian appointments, unless authorized by Pretrial Services.

Jicha, 64, besides was required to surrender each passports and question documents arsenic a information of his release.

Court records amusement that Jicha's $5 cardinal merchandise enslaved was guaranteed and signed successful January by his home spouse Ewa Jicha, arsenic good arsenic by Jicha's adult son and his 3 daughters, and by the fellow of 1 of Jicha's daughters and by the boyfriend's member and father, tribunal records show.

All of those radical were residents of the German authorities of Baden-Württemberg, according to tribunal records.

But nether the presumption of the bond, they are besides personally liable for the bond's amount.

After Horst Jicha was released, Ewa Jicha acted arsenic the third-party custodian for him, and was required to study immoderate violations of his merchandise to a U.S. probation officer.

Jicha was arrested connected Dec. 23 successful Miami, aft entering the United States for the archetypal clip successful much than 5 years, to abrogation there.

Prosecutors allege that Jicha launched USI Tech successful Europe, where, arsenic a co-founder and CEO, helium claimed the institution would marque "cryptocurrency investments casual and accessible to the mean retail investor."

"In reality, it was a multilevel selling strategy that relied connected investors recruiting different investors beneath them to bargain assorted purported cryptocurrency investments," the U.S. attorney's bureau said successful January.

"In 2017, Jicha brought USI Tech to the United States and aggressively marketed it to U.S. retailers connected societal media and done in-person presentations successful which helium falsely guaranteed precocious returns connected investments and made mendacious claims astir the legality of the platform's concern offerings," the bureau said. There are aggregate videos connected YouTube showing Jicha hyping the company.

In aboriginal 2018, aft USI Tech came nether regulatory scrutiny successful the U.S., "it ceased each U.S. operations overnight, leaving investors with nary quality to entree their wealth and resulting successful millions of dollars successful losses."

Prosecutors said that overmuch of the missing wealth successful the scam, "valued astatine astir $150 cardinal arsenic of the day of his arrest," was held successful the signifier of ether and bitcoin cryptocurrency. After USI Tech stopped operating, that cryptocurrency was sent to integer deposit addresses controlled by Jicha.