Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
$150M crypto scheme leader vanishes after escaping house arrest

$150M crypto scheme leader vanishes after escaping house arrest

GrafaGrafa2024/10/15 08:05
By:Liezl Gambe

Horst Jicha, a German national accused of leading a $150 million cryptocurrency fraud scheme, has become a fugitive after allegedly tampering with his ankle monitor on October 3 while under home detention in New York.

Prosecutors revealed that Jicha was awaiting trial on charges of securities fraud and conspiracy but disappeared just before his court appearance.

He was on a $5 million bond, partially secured by his family, and now faces an active manhunt.

According to the U.S. Attorney's office in Brooklyn, an investigation is underway to capture Jicha.

John Marzulli, a spokesperson for the office, stated, "There’s a very active investigation underway to capture him."

The bond, which included a $4 million portion guaranteed by Jicha’s domestic partner and children, will be forfeited as authorities pursue his whereabouts.

Jicha is accused of operating a fraudulent cryptocurrency scheme through a multi-level marketing platform known as USI Tech.

He falsely promised investors a return of 140% in 140 days, but when concerns were raised, Jicha allegedly siphoned off millions in cryptocurrency, including bitcoin and ether.

FBI Assistant Director James Smith remarked in January, "In reality, the platform was just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country."

U.S. Attorney officials described the scheme as a multi-level marketing operation that relied on investors recruiting others to purchase cryptocurrency-related investments.

Much of the fraudulently obtained cryptocurrency was reportedly sent to addresses controlled by Jicha after USI Tech ceased its operations.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Former Robinhood employees raise $5 million for crypto-AI startup OpenLayer

OpenLayer has raised $5 million from a16z CSX, Geometry, IOSG Ventures and others.The startup, co-founded by three former Robinhood employees, has developed an AI data layer.

The Block2024/11/19 19:14

Sunlight is more effective than censorship

Cointelegraph2024/11/19 18:00