German Fugitive in $150 Million Crypto Scam Escapes House Arrest

Horst Jicha, a German national who is being held in home detention in New York and is suspected of masterminding a bitcoin scam for $150 million, has reportedly tampered with his ankle monitor and is currently at large. He vanished just before his trial, according to the prosecution, and is accused of running a fraudulent multi-level marketing enterprise and stealing millions of dollars in bitcoin.

Tampering with Ankle Monitor and Disappearance

On October 3, Jicha, who had a $5 million bond provided by his family and was being held in home detention, allegedly tampered with his ankle monitor. He was awaiting trial for alleged securities fraud and conspiracy in connection with a significant cryptocurrency scheme involving USI Tech, his company. A representative for the Brooklyn U.S. Attorney’s office, John Marzulli, claims that a thorough investigation is in progress to locate Jicha.

Prosecutors proceeded right away to forfeit the bail, along with the $4 million that Jicha’s kids and domestic partner had pledged. The day before he disappeared, his ankle monitor stopped working, and he didn’t show up for the visitation scheduled by Pretrial Services the following day.

Authorities accuse Jicha of running a multi-level marketing scheme through USI Tech, falsely claiming that investors could earn a 140% return in just 140 days. In reality, the platform was a fraudulent front. FBI Assistant Director James Smith commented earlier this year: “In reality, the platform was just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country.”

Much of the stolen cryptocurrency, including bitcoin and ether, was moved to addresses under Jicha’s control after USI Tech was shut down. According to U.S. Attorney officials, the scam was really a traditional pyramid scheme that was disguising itself as a cryptocurrency investment platform since it was highly dependent on attracting new investors to maintain its viability.

While cautioning prospective investors about the perils of engaging in such fraudulent schemes, the authorities are still searching for Jicha.