This morning, German national Horst Jicha, 64, will be arraigned at the federal courthouse in Brooklyn, facing charges of securities fraud, wire fraud, and money laundering conspiracies in connection with a cryptocurrency scheme known as USI Tech. The indictment was unsealed following Jicha’s arrest on December 23, 2023, as he attempted to vacation in Miami, Florida. United States Attorney Breon Peace for the Eastern District of New York and James Smith, Assistant Director-in-Charge of the FBI New York Field Office, announced the charges.
U.S. Attorney Peace stated that Jicha allegedly exploited the burgeoning interest in cryptocurrencies to defraud U.S. investors through a multilevel marketing scheme. Despite avoiding the U.S. for over five years, Peace affirmed the commitment of his office and the FBI to bring Jicha to justice, emphasizing the office’s dedication to prosecuting those defrauding U.S. investors, irrespective of their origin.
FBI Assistant Director-in-Charge Smith highlighted the vulnerability of investors to schemes in emerging financial sectors. He accused Jicha of presenting USI Tech as a simple and accessible cryptocurrency investment platform with guaranteed returns, which in reality was a facade. When regulatory scrutiny arose in the U.S., USI Tech abruptly ceased operations, leaving investors unable to access their funds and incurring millions of dollars in losses. It is alleged that Jicha controlled cryptocurrency deposit addresses where much of the missing funds, valued at approximately $150 million, were sent following the shutdown of USI Tech.