- Crypto scammer disappears from New York after $5 million bail.
- IC3: Losses from FOMO-fueled crypto fraud hit $5.6 billion in 2023.
German national Horst Jicha, accused of running a $150 million crypto scam, reportedly disappeared from his New York residence while out on $5 million bail.
Jicha, who claimed to offer lucrative cryptocurrency investments through his company USI Tech, now faces securities fraud and conspiracy charges.
But when his ankle monitor mysteriously stopped working on Oct. 3, he used the opportunity to skip court, leaving authorities scrambling to locate him.
Jicha’s alleged scam capitalized on promises of 140% returns from crypto investments, luring unsuspecting investors into a classic Ponzi scheme via the USI Tech platform.
According to James Smith, deputy director of the FBI, “the platform was just a front,” allowing Jicha to “steal millions of his investors’ money and flee the country.”
Crypto fraud is increasing
According to the latest report from the FBI Internet Crime Complaint Center (IC3), crypto-related complaints skyrocketed in 2023.
He highlighted that there were over 69,000 reports of crypto fraud, totaling losses of over $5.6 billion.
Although crypto complaints only make up about 10% of all financial fraud reports, they account for almost half of total financial fraud losses.
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The report also notes that the “fear of missing out” on crypto profits has made it easier for criminals to target consumers and retail investors.
