Former Crypto CEO On The Run As Authorities Issue Arrest Warrant

A man under home detention for his alleged role in a $180 million cryptocurrency fraud scheme is reportedly evading capture after tampering with his ankle monitor, according to New York prosecutors.

Horst Jicha, the former CEO of the alleged crypto mining and trading firm USI-Tech, is thought to have altered his ankle bracelet on October 4th and subsequently violated his pretrial conditions by going on the run, as detailed in a court filing dated October 10th.

The Hunt Is Afoot

Pretrial Services informed the authorities about 12 hours after the monitor attached to Jicha stopped functioning, quickly pursuing an arrest warrant for the fugitive. Jicha, a German citizen, was apprehended on December 23rd, 2023, in Miami, Florida, after returning to the United States for the first time in over five years for a vacation. He had left the U.S. in 2018 following cease-and-desist letters issued by US officials.

He was placed under home detention in New York on a $5 million bond secured by his domestic partner and children, as reported by CNBC on October 11th. John Marzulli, a spokesperson for the Brooklyn United States Attorney Office, stated that an active investigation is ongoing to locate him.

The 64-year-old also surrendered his German passport in December, complicating any attempts to escape abroad. His trial was set for March 31st, where he faces multiple charges related to securities fraud and money laundering connected to USI-Tech.

Alleged Fraud

Prosecutors allege that Jicha assured investors a daily return of 1% on their investments through participation in various mining and trading operations related to USI-Tech. Authorities claim that 1,774 BTC and 28,589 ETH, valued at over $180 million, are unaccounted for in the alleged fraud scheme, with the funds reportedly sent to a crypto exchange deposit address controlled by Jicha.

USI-Tech was said to have been established in Europe in May 2017 before being aggressively marketed to U.S. investors a few months later. Following increased regulatory scrutiny, the firm shut down on January 8th, 2018, citing misleading remarks by investors regarding its products, which left investors unable to withdraw funds via the platform.