Prosecutors Ask to Delay Trial for Crypto Founder Horst Jicha After He Flees
On Thursday, October 24, 2024, prosecutors asked New York Federal Judge Orelia Merchant to postpone the trial date for Horst Jicha, the founder of a German cryptocurrency firm, who is accused of tampering with his ankle monitor and fleeing while out on bail for investor fraud charges.
Prosecutors revealed in a letter that Jicha absconded on October 3 and has not yet returned to custody. They requested that Judge Merchant delay the trial originally scheduled for March 24, 2025, due to these developments.
Jicha faces serious charges, including conspiracy to defraud the United States, securities fraud, mail fraud conspiracy, and money laundering, which were filed against him in August 2023. He founded USI Tech, a platform that was marketed as an accessible way for average investors to purchase cryptocurrency. However, prosecutors contend that it operated as a multilevel marketing scheme, requiring investors to recruit others to buy into the crypto investments.
USI Tech expanded into the U.S. market in 2017 but ceased operations in early 2018 after facing regulatory scrutiny. The shutdown left investors unable to access approximately $150 million in cryptocurrency funds, which prosecutors allege were redirected to addresses controlled by Jicha after the company’s closure.
Despite the charges, Jicha pleaded not guilty. His legal team previously expressed confidence in defending him against the allegations and aimed to highlight the involvement of other parties they claimed were responsible for misconduct.
In late December 2017, the Texas State Securities Board issued a cease and desist order against USI Tech, identifying the company as based in Dubai. The order noted that USI Tech was promoting its crypto investments through platforms like Craigslist and failed to adequately verify that all investors were accredited.
Prosecutors informed Judge Merchant about Jicha’s alleged bail violation on October 10, just hours before a scheduled status conference. They indicated that Jicha had seemingly tampered with his ankle monitor and fled, with authorities learning of his disappearance shortly after the device malfunctioned.
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