USI Tech Founder, Horst Jicha Arrested in $150 Million Crypto Fraud Scandal

The U.S. authorities recently announced the arrest of Horst Jicha, the founder of the crypto firm USI Tech, on charges related to an alleged $150 million international fraud scheme. 

Jicha, a 64-year-old German national, was arrested with charges against him including securities fraud, wire fraud, money laundering, and conspiracy to commit securities fraud.

The accusations stem from Jicha’s role in operating USI Tech as a multilevel marketing scheme, falsely promising investors high returns on cryptocurrency investments. 

The platform, initially marketed aggressively in the U.S., presented itself as an accessible avenue for retail investors to engage in the crypto market with promises of unrealistically high returns, reaching up to 140%.

According to a recent release from the U.S. Department of Justice (DOJ), Jicha was apprehended while attempting to vacation in Miami, Florida, on Dec. 23, 2023. 

CEO of Crypto Investment Platform Charged in Multi-Million Dollar International Fraud Scheme https://t.co/kE7bBcd49J (Announced with @NewYorkFBI)

— US Attorney EDNY (@EDNYnews) January 19, 2024

Multilevel Marketing and False Promises

USI Tech, once directed by Jicha as the world’s first automated Bitcoin trading platform, is now exposed as a fraudulent multilevel marketing (MLM) scheme. 

The platform’s modus operandi revolved around the recruitment of investors rather than genuine investment, creating a pyramid-like structure that is a common hallmark of deceptive MLM operations. 

Despite claims of simplifying crypto investments for the average investor, regulatory scrutiny in the U.S. in 2018 forced Jicha to abruptly shut down USI Tech’s operations.

Post-shutdown, a significant amount of crypto assets, including Bitcoin and Ether valued at around $150 million, was allegedly transferred to addresses controlled by Jicha. 

The DOJ, in a press release, emphasized the commitment to bringing Jicha to justice after years of staying outside the U.S., following an email from the victims.

Federal prosecutors have charged Jicha with securities fraud, wire fraud, money laundering, and conspiracies related to these offenses. 

The indictment alleges that USI Tech, under Jicha’s leadership, falsely marketed itself through its website, social media posts, and in-person events, claiming investors could achieve returns as high as 140%.

In response, Jicha’s legal team issued a statement expressing their commitment to defending against the allegations. 

“We look forward to zealously defending the allegations against Mr. Jicha and bringing forth the facts of his involvement with USI Tech in hopes that the bad actors will be brought to justice.”

The legal team said.

The arrest of Horst Jicha is just another discovery in the battle against crypto-related fraud, as authorities work to hold bad actors accountable for their actions.

Related: Police Make 12 Arrests, Seize $1 Million in Cash and $9.8 Million in Assets in JPEX Case