Horst Jicha, a German national who has been charged with having masterminded a $150m cryptocurrency fraud, escaped from under house arrest in New York when he reportedly altered his tracking anklet.
Jicha was under a $5 million bond, awaiting trial for securities fraud and conspiracy. The prosecutors allege that he interfered with his tracking bracelet on October 3, and the device stopped broadcasting on October 4. When Jicha failed to report to Pretrial Services, authorities realized he had fled.
John Marzulli, spokesperson for the US Attorney’s Office in Brooklyn, confirmed that an active investigation is underway to locate Jicha. The court has initiated bond forfeiture proceedings, including the $4 million portion secured by Jicha’s domestic partner and children. Despite the efforts to secure his presence ahead of his trial, Jicha’s escape has now triggered a manhunt involving multiple agencies.
Prosecutors accuse Jicha of propelling a grand fraud through a pyramid scheme known as USI Tech. By duping individuals into investing in cryptocurrencies such as bitcoin and ether, he assured 140% returns in 140 days. The scheme relied on investors recruiting others, further fueling its growth.
According to the FBI, the investment platform was a cover for siphoning off millions in cryptocurrency. Assistant Director James Smith stated that Jicha continued operating the fraudulent platform until questions from investors began to surface. At that point, Jicha allegedly stole millions of dollars worth of cryptocurrency and transferred it to digital wallets he controlled.
Following Jicha's disappearance, prosecutors moved quickly to hold his family and associates accountable by seeking to forfeit the bond they posted. They have also intensified their efforts to track down the fugitive. Marzulli noted that the investigation remains active while no clear leads have been shared with the public.
Authorities believe much of the stolen cryptocurrency was transferred to accounts under Jicha’s control after USI Tech collapsed. Officials have stressed the complexity of tracking such transfers, as they involve digital assets that can easily be hidden across multiple jurisdictions.