Crypto Firm USI Tech Founder Horst Jicha Arrested for Alleged $150 Million Fraud
Horst Jicha, the founder of crypto firm USI Tech, has been arrested and charged by U.S. authorities for his involvement in an alleged $150 million international fraud scheme.
According to a recent release published by the U.S. Depoartment of Justice (DOJ), Jicha, a 64-year-old German national, is accused of operating USI Tech as a multilevel marketing scheme that falsely promised investors high returns on cryptocurrency investments.
The charges, which include securities fraud and conspiracies to commit securities fraud, wire fraud, and money laundering, were unsealed upon Jicha’s arrest while he was 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
Initially, Jicha and USI Tech aggressively marketed their platform in the U.S., falsely promising high returns on investments. USI Tech was presented as an easy and accessible way for average retail investors to participate in the crypto market. These promises included unrealistic returns of up to 140%, luring investors into the scheme.
The platform operated under the guise of a legitimate crypto investment opportunity but was, in reality, a multilevel marketing (MLM) scheme. This scheme was based on the principle of investors recruiting more investors beneath them, creating a pyramid-like structure. The emphasis was on recruitment rather than genuine investment, which is a hallmark of many fraudulent MLM operations.
Jicha proclaimed in 2017 that USI Tech represented the world’s inaugural automated Bitcoin trading platform. He claimed it simplified crypto investments for the average
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