German businessman charged with $150 million crypto fraud scheme: Prosecutors allege USI Tech CEO scammed investors

Federal prosecutors announced on Friday that charges have been brought against a German businessman for allegedly defrauding investors out of more than $150 million in a cryptocurrency fraud scheme.

Horst Jicha, the founder and CEO of USI Tech, a crypto mining and trading platform, is accused of deceiving investors by promoting the platform as accessible to the average retail investor. However, prosecutors claim that Jicha and two unnamed co-conspirators engaged in a multilevel marketing scheme to lure and defraud investors.

Jicha was arrested after entering the U.S. for the first time in over five years on December 23rd and was arraigned in Brooklyn federal court. He is facing charges of securities fraud, wire fraud, conspiracy to commit securities fraud, and money laundering.

Authorities allege that USI Tech falsely claimed on its website, social media posts, and in-person events that investors could earn returns of up to 140% on their cryptocurrency investments made through the platform.

According to the indictment, Jicha and his co-conspirators aggressively promoted USI Tech, even claiming at one event that the company had received approval from a top SEC attorney. As regulators began investigating USI Tech in 2018, Jicha reportedly shut down the company’s U.S. operations, preventing investors from withdrawing their funds. Prosecutors state that around $150 million of investors’ money has been transferred to accounts controlled by Jicha.

In response to the charges, Jicha’s attorneys assert that they will vigorously defend their client and present the facts of his involvement with USI Tech in order to bring the responsible parties to justice.

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