Courts and Law Downtown

Brooklyn federal prosecutors charge crypto CEO in multimillion-dollar international fraud scheme

January 22, 2024 Robert Abruzzese, Courthouse Editor

U.S. Attorney Breon Peace said that his office waited for five years for Horst Jicha to return to the United States to arrest him on charges of securities fraud and conspiracies to commit securities fraud, wire fraud and money laundering related to the cryptocurrency investment platform USI Tech.Photo: Seth Wenig/AP

U.S. Attorney Breon Peace said that his office waited for five years for Horst Jicha to return to the United States to arrest him on charges of securities fraud and conspiracies to commit securities fraud, wire fraud and money laundering related to the cryptocurrency investment platform USI Tech.
Photo: Seth Wenig/AP

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Horst Jicha, CEO of the cryptocurrency investment platform USI Tech, was arraigned on Friday in the federal courthouse in Brooklyn on charges of securities fraud and conspiracies to commit securities fraud, wire fraud and money laundering.

Jicha, a German national, was arrested upon entering the United States on Dec. 23, 2023, while attempting to vacation in Miami, Florida. Jicha had evaded U.S. authorities for over five years until his recent arrest.

“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,” said U.S. Attorney Breon Peace.

“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,” Peace continued. “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.”

USI Tech, initially launched in Europe, claimed to simplify and democratize cryptocurrency investments for average retail investors. However, the indictment alleges it operated as a multilevel marketing scheme, heavily reliant on investors recruiting others.

As CEO, Jicha led the company’s expansion into the U.S. market in 2017, employing aggressive social media campaigns and in-person presentations. He falsely guaranteed high investment returns and made misleading statements about the platform’s legal status.

The operation came to an abrupt halt in early 2018 following U.S. regulatory scrutiny, leaving investors unable to access their funds and resulting in millions of dollars in losses. Approximately $150 million worth of Ether and Bitcoin, believed to be investor funds, were traced to cryptocurrency deposit addresses controlled by Jicha after USI Tech’s shutdown.

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