Man accused of fraud flees after skipping $150m hearing

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

Jicha, 64, was under house arrest and out on a $5 million bond, 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 faced multiple charges related to 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 claimed 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% returns in 140 days 

Investors were told they could earn 140% returns in 140 days through bitcoin mining, trading, and referring others to invest, according to CNBC. In reality, the platform collapsed, leaving investors with losses while Jicha allegedly pocketed millions.

USI Tech ceased operations in the U.S. in early 2018 after regulators began investigating the company. The scam reportedly left investors unable to withdraw funds, with much of the stolen money held in ether and bitcoin addresses controlled by Jicha.

After fleeing, CNBC reports that Jicha’s $5 million bond, guaranteed by his partner, children, and associates in Germany, has been forfeited.

Prosecutors are actively working to locate Jicha, but as of now, his whereabouts remain unknown. Jicha had lived in various countries, including Brazil and Spain, before being arrested in Florida last year. He was released on bond in January 2024, with strict conditions limiting his movements, but now faces an uncertain fate as authorities continue their search.