US authorities have charged a German businessman for allegedly operating a crypto pyramid scheme that defrauded investors of approximately $150 million.
In a new press release, the U.S. Attorney’s Office for the Eastern District of New York charges Horst Jicha with securities fraud and conspiring to commit securities fraud, bank fraud and money laundering for running a multi-million dollar crypto scam.
According to federal prosecutors, the German was the co-founder and leader of USI Tech, an online platform that “aimed to make cryptocurrency investing easy and accessible to the average retail investor.” But instead of making legitimate investments in digital assets, the company allegedly engaged in a multi-level marketing scheme designed to encourage investors to recruit other investors and get them to purchase products promoted as cryptocurrencies.
“In 2017, Jicha brought USI Tech to the United States and aggressively marketed it to US retailers on social media and through personal presentations falsely guaranteeing high returns on investments and making false claims about the legality of the investment offerings of the platform. ”
USI Tech abruptly shut down its U.S. operations after receiving regulatory scrutiny in early 2018, leaving investors staring at millions of dollars in losses, according to federal prosecutors.
“A large portion of the missing funds – Ether and Bitcoin, valued at approximately $150 million on the date of his arrest – were sent to cryptocurrency deposit addresses controlled by Jicha after USI Tech ceased operations.”
Jicha fled the US after shutting down USI Tech’s operations in the country and managed to stay away for half a decade, but was arrested in December 2023 while trying to vacation in Miami, Florida.
Says FBI Assistant Director James Smith:
“Too often, honest investors fall victim to schemes around emerging financial opportunities. Horst Jicha is said to have advertised a platform that made investing in cryptocurrency simple and more accessible to investors, with guaranteed returns. In reality, the platform was just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country. No matter how long it takes, the FBI will continue to bring criminal financial fraudsters to justice.”
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