Horst Jicha fugitive in USI Tech cryptocurrency fraud case

A German national who was under home detention in New York City on a $5 million bond guaranteed by his domestic partner and children in a case in which he was charged with overseeing a $150 million cryptocurrency fraud is now a fugitive.

“There’s a very active investigation underway to capture him,” said John Marzulli, a spokesman for the Brooklyn U.S. Attorney’s Office, on Friday, a day after the defendant, Horst Jicha, failed to appear in Brooklyn federal court as scheduled.

“We are going to forfeit the bond,” Marzulli added, meaning that prosecutors will seek to obtain the $4 million portion of the bond that was personally guaranteed by Jicha’s partner, children and three other people, all of whom live in Germany.

Another $1 million in cash to secure the bond had been deposited with the federal government.

Horst is suspected of having tampered with his ankle bracelet monitor on Oct. 3, a prosecutor from the Brooklyn U.S. Attorney’s Office told a judge Thursday at a hearing that was supposed to address pre-trial issues in the case.

After noticing that Jicha’s ankle bracelet was not working, Pretrial Services officials sent him an email directing him to visit their office the next day. Jicha did not show up, the prosecutor told U.S. District Court Judge Orelia Merchant.

Only then did Pretrial Services inform prosecutors that Jicha’s ankle bracelet had ceased working, 26 hours after becoming aware of that fact, the prosecutor told the judge.

Jicha’s defense lawyers did not immediately reply to a request for comment.

CNBC has requested comment from Pretrial Services in Brooklyn federal court.

Jicha is scheduled to go on trial in the case March 31, where he faces multiple charges of securities fraud and conspiracy related to a multi-level marketing scheme known as USI Tech.

According to prosecutors, Jicha lied to retail investors when he told them they would make an average of 140% returns on their money in a 140-day period.

Investors were told that there were two ways they could make money: First, they could invest in what were purportedly bitcoin mining and trading operations. They could also earn commissions for referring others to buy USI Tech products, the indictment against Jicha says.

“In reality the platform was just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country,” FBI Assistant Director-in-Charge James Smith said in January.

As of Friday, Jicha’s whereabouts were unknown. Court records show he had lived in Brazil and Spain before he was arrested in Florida in late 2023.

Jicha was released on bond in January, and had lived in Brooklyn.

Under the conditions of Jicha’s release, he was obligated to remain in New York City or Long Island, and not to…