Tech
Founder of German crypto firm USI Tech charged in $150 million fraud scheme
Horst Jicha, the German founder of USI Tech, a cryptocurrency mining and digital asset exchange platform, faces serious legal consequences in the United States. Federal prosecutors in New York have accused Jicha of orchestrating a fraudulent scheme who allegedly defrauded investors of approximately $150 million, according to the Justice Department’s official website. This case highlights the ongoing risks and regulatory scrutiny in the cryptocurrency industry.
Jicha, 64, has been charged with multiple crimes, including securities fraud, money laundering and wire fraud. He was arrested on December 23, 2023, while trying to go on vacation to Miami. This arrest marks a significant development in a saga that has been unfolding for several years.
In 2017, Jicha said USI Tech was the world’s first automated Bitcoin trading platform, aiming to make cryptocurrency investing more accessible to retail investors. He has aggressively marketed the platform in the United States, particularly in New York and Las Vegas. However, in March 2018, when the authorities began their investigation, Jicha suddenly closed USI’s online platform. This action blocked withdrawals of approximately $150 million worth of investor-owned crypto assets, which remain unaccounted for.
The FBI’s involvement underlines the seriousness of the allegations. James Smith, head of the FBI’s New York office, said the platform was just a front and accused Jicha of fleeing the country with millions in investors’ money.
Jicha’s case, filed as US v Jicha, 23-CR-342 in the United States District Court for the Eastern District of New York (Brooklyn), represents a stark reminder of the potential risks associated with unregulated investment platforms, in particularly in the volatile cryptocurrency market. . The case also highlights growing efforts by US authorities to crack down on fraudulent activity in the cryptocurrency sector.
Jicha pleaded not guilty to the charges and was released on $5 million bail. His defense lawyers, Marissel Descalzo and David Tarras, have expressed their intention to defend Jicha firmly, trying to bring to light the facts of his involvement with USI Tech. They aim to distinguish Jicha’s actions from those of real “bad actors”.
This development in the world of cryptocurrencies is a crucial reminder for investors to exercise caution and conduct thorough research before investing in digital assets. It also highlights the need for improved regulatory frameworks to protect investors and maintain the integrity of the cryptocurrency market.
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