Horst Jicha pleads guilty in $150 million USI Tech crypto fraud case in New York.

• A German national who was under house arrest on a $5 million bond for overseeing a $150 million cryptocurrency fraud has fled.
• The Brooklyn U.S. Attorney's Office informed a judge that Horst Jicha is suspected of tampering with his ankle bracelet monitor on Oct. 3.
• In March, Jicha will face trial on several counts of securities fraud and conspiracy related to the USI Tech multi-level marketing scheme.
• Jicha received approximately $150 million worth of Ether and bitcoin crypto through cryptocurrency deposit addresses controlled by him after USI Tech ceased operations, according to prosecutors.

A German national who was under house arrest in New York City on a $5 million bond backed by his spouse and offspring in a case involving the management of a $150 million cryptocurrency scam has now fled.

On Friday, John Marzulli, a spokesman for the Brooklyn U.S. Attorney's Office, stated that there is an active investigation underway to capture Horst Jicha, who failed to appear in Brooklyn federal court the previous day.

Marzulli stated that we will surrender the bond, which means that prosecutors will attempt to recover the $4 million portion of the bond that was personally guaranteed by Jicha's partner, children, and three other individuals, all of whom reside in Germany.

The federal government received another $1 million in cash to cover the bond.

A prosecutor from the Brooklyn U.S. Attorney's Office informed a judge at a hearing on Oct. 3 that Horst was suspected of tampering with his ankle bracelet monitor. The hearing was intended to address pre-trial issues in the case.

Jicha's ankle bracelet malfunctioned, prompting Pretrial Services officials to send him an email instructing him to visit their office the following day. However, Jicha failed to appear, as the prosecutor informed U.S. District Court Judge Orelia Merchant.

The prosecutor informed the judge 26 hours after becoming aware that Jicha's ankle bracelet had stopped working, that Pretrial Services had informed them of the issue.

Jicha's defense lawyers did not immediately reply to a request for comment.

CNBC has requested comment from Pretrial Services in Brooklyn federal court.

On March 31, Jicha will be tried for multiple charges of securities fraud and conspiracy related to a multi-level marketing scheme called USI Tech.

Prosecutors claim that Jicha deceived retail investors by stating they would achieve an average return of 140% on their investment in a 140-day timeframe.

Jicha informed investors that they could generate profits through two avenues: investing in supposed bitcoin mining and trading operations, or by earning commissions for referring others to purchase USI Tech products, according to the indictment.

In January, FBI Assistant Director-in-Charge James Smith stated that the platform was merely a facade, and when inquiries were made, Jicha absconded with millions of his investors' funds.

Jicha's whereabouts were unknown as of Friday. He had previously lived in Brazil and Spain before being arrested in Florida in late 2023.

Jicha was released on bond in January, and had lived in Brooklyn.

Jicha was required to remain in New York City or Long Island and not leave his home except for court appearances, attorney visits, or medical appointments, as per the conditions of his release, unless authorized by Pretrial Services.

As a condition of his release, Jicha, 64, was obligated to relinquish all of his passports and travel documents.

Jicha's $5 million release bond was guaranteed and signed in January by his domestic partner Ewa Jicha, as well as by Jicha's adult son and his three daughters, and by the boyfriends of two of Jicha's daughters, court records show.

According to court records, all of those individuals were residents of the German state of Baden-Württemberg.

Under the terms of the bond, they are also liable for the bond's total amount.

Ewa Jicha served as the third-party custodian for Horst Jicha after his release and was obligated to report any violations of his release to a U.S. Probation officer.

On Dec. 23 in Miami, Jicha was arrested after returning to the United States for the first time in over five years for a vacation.

Jicha, as a co-founder and CEO of USI Tech in Europe, claimed that the company would simplify cryptocurrency investments for the average retail investor, according to prosecutors' allegations.

The U.S. Attorney's Office stated in January that the scheme was a multilevel marketing plan that required investors to recruit others to purchase cryptocurrency investments.

Jicha introduced USI Tech to the US in 2017 and vigorously advertised it to American retailers through social media and in-person presentations, where he made false promises about the platform's investment returns and legality, according to the office. Several videos on YouTube show Jicha promoting the company.

In early 2018, USI Tech halted all its U.S. operations abruptly, leaving investors without access to their funds and resulting in significant financial losses.

Jicha was found to have held much of the missing money in the form of cryptocurrency, which was valued at approximately $150 million as of the date of his arrest.