Alleged Crypto Fraudster Flees After Tampering with Ankle Monitor

Introduction

Horst Jicha, the former CEO of USI-Tech, has reportedly gone on the run after tampering with his ankle bracelet monitor while under home detention in New York. Jicha faces serious charges related to a $180 million cryptocurrency fraud scheme.

Details of the Case

According to a court filing dated October 10, Jicha allegedly tampered with his ankle monitor on October 4, prompting New York prosecutors to label him a fugitive. Pretrial Services notified the government about 12 hours after the monitor stopped functioning, leading to an immediate search for an arrest warrant.

Jicha, a German national, was arrested on December 23, 2023, in Miami after returning to the U.S. for the first time in over five years. He had previously fled the country in 2018 following cease-and-desist letters from U.S. authorities. Upon his arrest, he was placed under home detention in New York on a $5 million bond, which was guaranteed by his domestic partner and children.

As part of his conditions, Jicha was required to surrender his German passport, complicating any attempts to flee abroad.

Ongoing Investigation

John Marzulli, a spokesperson for the Brooklyn U.S. Attorney’s Office, confirmed that a thorough investigation is underway to locate Jicha. His trial is scheduled for March 31, where he faces multiple charges, including securities fraud and conspiracy to commit money laundering.

Allegations Against Jicha

Prosecutors allege that Jicha misled investors by promising a 1% daily return on their investments through USI-Tech's mining and trading operations. Authorities claim that approximately 1,774 Bitcoin and 28,589 Ether—valued at over $180 million—are unaccounted for, with funds allegedly transferred to a crypto exchange controlled by Jicha.

USI-Tech's Background

Founded in Europe in May 2017, USI-Tech was aggressively marketed to U.S. investors before shutting down on January 8, 2018, after facing regulatory scrutiny. The company claimed that misleading comments from investors about its products led to its downfall, leaving many unable to withdraw their funds.

Conclusion

As the investigation continues, authorities are working diligently to capture Jicha, whose alleged actions have cast a shadow over the cryptocurrency industry. The outcome of his upcoming trial will likely have significant implications for investors and the broader market.