- Crypto scammer disappears from NYC after posting $5M bond.
- IC3: FOMO-driven crypto fraud losses reach $5.6B in 2023.
Horst Jicha, a German national accused of orchestrating a $150 million cryptocurrency scam, has reportedly vanished from his residence in New York City while on a $5 million bond.
Jicha, who promoted enticing cryptocurrency investments through his firm USI Tech, now faces charges related to securities fraud and conspiracy.
After his ankle monitor inexplicably stopped working on October 3, he seized the chance to avoid a scheduled court appearance, prompting authorities to search for him.
Jicha’s alleged scam preyed on promises of 140% returns from crypto investments, drawing unsuspecting investors into a traditional Ponzi scheme via the USI Tech platform.
FBI Assistant Director in Charge James Smith stated, “the platform was merely a cover,” enabling Jicha to “steal millions from his investors and escape the country.”
Rising Crypto Fraud
The latest report from the FBI Internet Crime Complaint Center (IC3) indicates a sharp increase in crypto-related complaints in 2023.
It revealed more than 69,000 reports of crypto fraud, totaling losses exceeding $5.6 billion.
While crypto complaints account for roughly 10% of all financial fraud reports, they comprise nearly half of the overall financial fraud losses.
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The report further indicates that the “fear of missing out” on crypto gains has made consumers and retail investors more vulnerable to criminal activity.
