Man accused of fraud flees after skipping $150m hearing

A German man named Horst Jicha is now a fugitive after missing a $150 million cryptocurrency fraud hearing in New York.

Jicha, 64, was under house arrest and was released on $5 million bail, but authorities suspect he tampered with his ankle monitor and disappeared earlier this month, according to CNBC.

His trial was scheduled for March 31, where he faces multiple charges of overseeing a crypto scheme that defrauded investors through USI Tech, a multi-level marketing platform.

Jicha’s case revolves around USI Tech, a platform that claims to offer cryptocurrency investments with guaranteed high returns. According to prosecutors, USI Tech was a pyramid scheme disguised as a legitimate crypto investment operation.

Jicha: 140% return in 140 days

According to CNBC, investors were told they could earn 140% returns in 140 days by mining and trading bitcoin and referring others to invest. Jicha allegedly pocketed millions while in reality the platform crashed, leaving investors facing losses.

USI Tech ceased operations in the United States in early 2018 after regulators began investigating the company. The scam reportedly resulted in investors being unable to withdraw money as most of the stolen money was held in ether and bitcoin addresses controlled by Jicha.

After he escaped, CNBC reported that Jicha’s $5 million bond, guaranteed by his partner, his children and associates in Germany, was forfeited.

Prosecutors are actively working to locate Jicha, but as of this time, his whereabouts are unknown. Jicha had lived in various countries, including Brazil and Spain, before his arrest in Florida last year. He was released on bail in January 2024 with strict conditions restricting his movements, but he now faces an uncertain fate as authorities continue to search.