Horst Jicha, the German founder of USI Tech, was accused by the federal court in Brooklyn of charges of securities fraud and conspiracies to conduct securities fraud, wire fraud, and money laundering.
He used an illicit multilevel marketing scheme to defraud the investor of roughly $150 million. According to an indictment, he closed down the USI online platform and moved most of its Bitcoin and Ether assets to accounts he controlled after promising investors returns of up to 140%.
Jicha was arrested upon entering the United States on December 23, 2023, as he tried to vacation in Miami, Florida, but charges against him were unsealed.
The Federal Bureau of Investigation’s (FBI) New York Field Office, assistant director-in-charge, James Smith, and attorney for the Eastern District of New York, Breon Peace, announced the charges.
United States Attorney Peace said, “As alleged, in the early days of crypto, the defendant deployed a multilevel marketing scheme to defraud U.S. investors excited about the crypto market.”
He added, “Although the defendant did not return to the United States for half a decade, my Office and the FBI worked to ensure that when he did, he would be brought to justice. Our Office is committed to prosecuting any criminal actor defrauding U.S. investors for their own gain, regardless of where in the world they may come from.”
“Too often honest investors fall victim to schemes surrounding emerging financial opportunities. Horst Jicha allegedly advertised a platform that made cryptocurrency investing simple and more accessible to investors, with guaranteed returns,” spoke FBI Assistant Director-in-Charge Smith.
He added that Jicha had stolen millions of dollars from his investors and left the country, with the platform being nothing more than a front when doubts surfaced. No matter how long it takes, the FBI will continue to bring justice to criminal financial fraudsters.
Also Read: IcomTech CEO Sentenced for $914K Crypto Investment Fraud
