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David Vance

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Horst Jicha, a German businessman and the CEO of USI Tech, is facing serious charges after allegedly scamming investors out of more than $150 million in a crypto <a href="https://news.todayq.com/onecoin-employee-pleads-guilty-in-massive-fraud-scheme-the-cryptoqueen-still-at-large/" target="_blank" rel="noopener noreferrer nofollow">fraud scheme</a>. The charges include securities fraud, wire fraud, and money laundering, as announced by the federal prosecutors on Friday. What actually is the fraud scheme? 
Jicha and two unnamed co-conspirators are accused of luring and defrauding investors through a multilevel marketing scheme, falsely promoting USI Tech as a crypto mining and trading platform accessible to the average retail investor. Prosecutors allege that the company, which claimed to offer returns of up to 140%, was, in reality, a facade.
In the spring of 2017, Jicha and his team actively promoted USI Tech through events and social media, falsely claiming that the platform was completely legal. One co-conspirator even allegedly asserted at an event in Valley Forge, Pennsylvania, that the platform had received approval from “the very top SEC attorney.”
As regulators began scrutinizing USI Tech in 2018, Jicha is accused of abruptly terminating the company’s U.S. operations, preventing investors from withdrawing their money. Prosecutors claim that since then, around $150 million has been transferred to accounts controlled by Jicha, leaving investors in significant financial distress.
Marissel Descalzo and David Tarras, attorneys representing Jicha, stated, “It’s always difficult when investors have suffered losses at the hands of certain bad actors. We look forward to zealously defending the allegations against Mr. Jicha and bringing forth the facts of his involvement with USI Tech in hopes that the bad actors will be brought to justice.” The U.S. Attorney’s Office’s take on it 
The United States Attorney’s office emphasized the severity of the charges, stating that Jicha allegedly deployed a multilevel marketing scheme to defraud U.S. investors excited about the crypto market. Breon Peace, the U.S. Attorney for the Eastern District of New York, affirmed the commitment to prosecuting criminal actors defrauding U.S. investors, regardless of their origin.
James Smith, Assistant Director-in-Charge at the <a href="https://news.todayq.com/fbi-charges-six-in-30-million-cryptocurrency-darknet-money-transmitting-operation/" target="_blank" rel="noopener noreferrer nofollow">FBI</a>, highlighted the unfortunate reality where honest investors fall victim to schemes surrounding emerging financial opportunities. Smith stated, “Horst Jicha allegedly advertised a platform that made cryptocurrency investing simple and more accessible to investors, with guaranteed returns. In reality, the platform was just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country.”
According to the indictment, USI Tech, initially an online platform in Europe, purported to make cryptocurrency investments easy and accessible. In 2017, Jicha brought the scheme to the United States, aggressively marketing it through social media and in-person presentations, making false promises about high returns on investments and the legality of the platform’s offerings.
After regulatory scrutiny in early 2018, USI Tech ceased all U.S. operations overnight, leaving investors unable to access their money and incurring millions of dollars in losses. The missing funds, valued at approximately $150 million in Ether and Bitcoin, were allegedly sent to cryptocurrency addresses controlled by Jicha after the company ceased operations.
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$150 million Crypto scam, USI tech CEO arrested for fraud

Todayq News

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