- The operator of the USI Tech crypto scam has been arraigned in the US, accused of defrauding investors of $150 million
- Jicha was arrested upon entering the country in December, six years after he pulled the shutters down on USI Tech
- The German national allegedly transferred $150 million in bitcoin and ether to accounts under his control following its closure
The operator of a crypto scam known as USI Tech was recently arraigned in the US on charges of duping investors out of a staggering $150 million. Horst Jicha, a German national, was arrested as he entered the US in late December with plans to vacation in Miami, Florida. USI Tech promised high investment returns but lied to investors over the performance of the fund, ceasing all operations in 2018 and blocking investors from accessing their funds. Jicha allegedly transferred bitcoin and ether worth $150 million at the time to accounts under his control.
USI Tech Promised High Returns
Jicha presented USI Tech as an online platform facilitating easy cryptocurrency investments for retail investors when it was in reality a multilevel marketing scheme. Jicha, identified as one of USI Tech’s founders and its Chief Executive Officer, expanded the operation to the United States in 2017, aggressively promoting the platform through social media and in-person presentations where he made false promises of high returns on investments and providing inaccurate information about the platform’s legality.
Facing regulatory scrutiny in the US in early 2018, USI Tech abruptly ceased all operations, leaving investors unable to access their funds and resulting in substantial financial losses. A significant amount of investors’ funds, approximately $150 million in bitcoin and ether, was allegedly diverted to cryptocurrency addresses controlled by Jicha after USI Tech’s shutdown.
A Holiday He Won’t Forget
Jicha, who had not returned to the United States for over five years, seemingly thought the coast was clear after six years and entered the US on December 23 in order to take a trip to Miami. His vacation was cut short, however, when the charges against him were unsealed and he was arrested.
He was arraigned last week at the federal courthouse in Brooklyn, facing charges of securities fraud, wire fraud, and money laundering, and faces years in prison for his role in the cryptocurrency scheme.
That’s one costly holiday.
