German Businessman Charged with Running $150 Million Crypto Scam
A German businessman is facing charges from US authorities for allegedly operating a crypto pyramid scheme that defrauded investors of approximately $150 million. The U.S. Attorney’s Office for the Eastern District of New York has accused Horst Jicha of securities fraud, wire fraud, money laundering, and conspiracies to commit securities fraud. Jicha is said to have co-founded and led USI Tech, an online platform that claimed to make cryptocurrency investments easy and accessible. However, instead of legitimate investments, the firm allegedly ran a multi-level marketing scheme, encouraging investors to recruit others and buy products falsely promoted as cryptocurrencies.
USI Tech Abruptly Shuts Down Operations
Federal prosecutors claim that USI Tech abruptly closed its US operations in early 2018 after attracting regulatory scrutiny. This left investors with significant losses. The missing funds, valued at around $150 million in Ether and Bitcoin, were allegedly sent to cryptocurrency deposit addresses controlled by Jicha after the company ceased operations. Following the shutdown, Jicha fled the US but was arrested in December 2023 while attempting to go on vacation in Miami, Florida.
FBI Assistant Director-in-Charge Comments on the Case
FBI Assistant Director-in-Charge James Smith commented on the case, stating that Jicha advertised a platform that promised easy cryptocurrency investing with guaranteed returns. However, it turned out to be a facade, and when questions arose, Jicha allegedly stole millions from investors before fleeing the country. Smith emphasized that the FBI will continue to bring criminal financial fraudsters to justice.
Hot Take: German Businessman Charged with Operating Multi-Million Dollar Crypto Scam
A German businessman is facing charges from US authorities for allegedly running a crypto pyramid scheme that defrauded investors of approximately $150 million. The businessman co-founded and led USI Tech, an online platform that falsely claimed to make cryptocurrency investments easy and accessible. Instead, it allegedly operated as a multi-level marketing scheme, misleading investors and causing significant financial losses. After abruptly shutting down its operations in the US, the accused fled the country but was arrested in December 2023. The case highlights the ongoing efforts of law enforcement agencies to bring financial fraudsters to justice in the crypto space.
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