Crypto
Horst Jicha skips bail in $150 million USI Tech crypto fraud case in New York
Horst Jicha discussing cryptocurrency.
Source: Team Business Global | YouTube
A German national who was under home detention in New York City on a $5 million bond guaranteed by his domestic partner and children in a case in which he was charged with overseeing a $150 million cryptocurrency fraud is now a fugitive.
“There’s a very active investigation underway to capture him,” said John Marzulli, a spokesman for the Brooklyn U.S. Attorney’s Office, on Friday, a day after the defendant, Horst Jicha, failed to appear in Brooklyn federal court as scheduled.
“We are going to forfeit the bond,” Marzulli added, meaning that prosecutors will seek to obtain the $4 million portion of the bond that was personally guaranteed by Jicha’s partner, children and three other people, all of whom live in Germany.
Another $1 million in cash to secure the bond had been deposited with the federal government.
Horst is suspected of having tampered with his ankle bracelet monitor on Oct. 3, a prosecutor from the Brooklyn U.S. Attorney’s Office told a judge Thursday at a hearing that was supposed to address pre-trial issues in the case.
After noticing that Jicha’s ankle bracelet was not working, Pretrial Services officials sent him an email directing him to visit their office the next day. Jicha did not show up, the prosecutor told U.S. District Court Judge Orelia Merchant.
Only then did Pretrial Services inform prosecutors that Jicha’s ankle bracelet had ceased working, 26 hours after becoming aware of that fact, the prosecutor told the judge.
Jicha’s defense lawyers did not immediately reply to a request for comment.
CNBC has requested comment from Pretrial Services in Brooklyn federal court.
U.S. Attorney Breon Peace gives a statement after a former U.S. Rep. George Santos court hearing on August 19, 2024 in West Islip, New York.
Michael M. Santiago | Getty Images
Jicha is scheduled to go on trial in the case March 31, where he faces multiple charges of securities fraud and conspiracy related to a multi-level marketing scheme known as USI Tech.
According to prosecutors, Jicha lied to retail investors when he told them they would make an average of 140% returns on their money in a 140-day period.
Investors were told that there were two ways they could make money: First, they could invest in what were purportedly bitcoin mining and trading operations. They could also earn commissions for referring others to buy USI Tech products, the indictment against Jicha says.
“In reality the platform was just a facade, and when questions arose, Jicha stole millions of his investors’ money and fled the country,” FBI Assistant Director-in-Charge James Smith said in January.
As of Friday, Jicha’s whereabouts were unknown. Court records show he had lived in Brazil and Spain before he was arrested in Florida in late 2023.
Jicha was released on bond in January, and had lived in Brooklyn.
Under the conditions of Jicha’s release, he was obligated to remain in New York City or Long Island, and not to leave his home save for court appearances, attorney visits or medical appointments, unless authorized by Pretrial Services.
Jicha, 64, also was required to surrender all passports and travel documents as a condition of his release.
Court records show that 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 boyfriend of one of Jicha’s daughters and by the boyfriend’s brother and father, court records show.
All of those people were residents of the German state of Baden-Württemberg, according to court records.
But under the terms of the bond, they are also personally responsible for the bond’s amount.
After Horst Jicha was released, Ewa Jicha acted as the third-party custodian for him, and was required to report any violations of his release to a U.S. Probation officer.
Jicha was arrested on Dec. 23 in Miami, after entering the United States for the first time in more than five years, to vacation there.
Prosecutors allege that Jicha launched USI Tech in Europe, where, as a co-founder and CEO, he claimed the company would make “cryptocurrency investments easy and accessible to the average retail investor.”
“In reality, it was a multilevel marketing scheme that relied on investors recruiting other investors below them to buy various purported cryptocurrency investments,” the U.S. Attorney’s Office said in January.
“In 2017, Jicha brought USI Tech to the United States and aggressively marketed it to U.S. retailers on social media and through in-person presentations in which he falsely guaranteed high returns on investments and made false claims about the legality of the platform’s investment offerings,” the office said. There are multiple videos on YouTube showing Jicha hyping the company.
In early 2018, after USI Tech came under regulatory scrutiny in the U.S., “it ceased all U.S. operations overnight, leaving investors with no ability to access their money and resulting in millions of dollars in losses.”
Prosecutors said that much of the missing money in the scam, “valued at approximately $150 million as of the date of his arrest,” was held in the form of ether and bitcoin cryptocurrency. After USI Tech stopped operating, that cryptocurrency was sent to digital deposit addresses controlled by Jicha.
Crypto
British Airline Jet2 Shares Jump 9% After $536M Fuel Hedge Gain Offsets Middle East Travel Fears
Key Takeaways
- Jet2 recorded a $536 million balance sheet windfall on July 8 after locking in low-cost fuel derivatives.
- The Middle East conflict triggered a 67% decline in annual cash inflows as travelers delayed holiday bookings.
- CEO Steve Heapy announced a $335 million buyback program and expanding operations at London Gatwick Airport.
Sector Resilience Amid Fuel Volatility
British airline and package holiday provider Jet2 defied intense geopolitical instability and travel sector panic triggered by the Middle East war by reporting a more than $500 million balance sheet boost, fueled by the rising price of jet fuel.
As the conflict in the Middle East escalated, spiking fuel rates caused the value of the company’s fuel derivatives to soar. According to Jet2’s full financial results released July 8, an extra $536 million in income was primarily driven by these favorable fair value movements.
The financial buffer comes after widespread fears earlier this year that rising energy costs could push airlines into bankruptcy and force massive summer holiday cancellations. In the United States, higher fuel prices contributed to the collapse of low-budget airline Spirit in May. The United Kingdom had been labeled as the nation “most exposed” to the jet fuel crisis, forcing government ministers to scramble to protect airline fuel access and temporarily suspend airport capacity rules.
While Jet2 was able to mitigate the price shock, the broader conflict still took a toll on booking behaviors. The airline conceded that ongoing travel uncertainty from the war caused holidaymakers to delay their trips and book much closer to their departure dates than usual. As a result, Jet2’s cash inflow plummeted by 67% to approximately $103 million for the fiscal year ending March 31.
Financially, Jet2 reported mixed full-year results. Group revenue climbed 4% to $10.05 billion, but pre-tax profit slipped 7% to $738.6 million, hit hard by lower income earned on its cash deposits.
Despite the profit dip, operational metrics showed strong consumer demand. Jet2 increased its total seat capacity by 8% to 24 million and flew 20.8 million passengers — a 5% increase year-over-year. The company also announced a new $335 million share buyback program, pointing to robust liquidity and confidence in its midterm outlook.
On the stock market, shares of the AIM-listed company jumped 9% to $19.92 at Wednesday’s opening bell, leaving the stock up 5% for the year.
Chief Executive Issues Tax Warning
The financial report coincided with an aggressive political warning from Jet2 Chief Executive Steve Heapy. Speaking to shareholders, Heapy cautioned political figures — specifically naming prominent politician Andy Burnham — against treating the aviation and holiday industry as a “cash cow.”
Burnham is widely anticipated to enter Downing Street later this month following recent political shifts.
“Don’t treat the aviation or holiday industry as a cash cow, because taxes increase the price of flying,” Heapy said, pointing out that Jet2 had to absorb $67 million in additional regulatory and tax costs over the last year. “I think, you know, enough is enough.”
Operationally, Jet2 is pushing a major expansion strategy designed to challenge the UK’s dominant legacy carriers. In March, the airline launched a six-aircraft hub at London Gatwick Airport, signaling an aggressive move out of its traditional northern England strongholds. The company notes it now operates within a 90-minute drive of more than 90% of the UK population.
Key Takeaways
- LAB token cratered 90% over 48 hours, wiping out billions in market cap.
- ZachXBT slammed top centralized exchanges for failing to halt the July manipulation.
- Investors surged to avoid trading LAB as team token unlocks are set for later in July 2026.
LAB Trade Blames ‘Large Market Participants’
LAB, the native token of the multi-chain trading platform LAB Trade, suffered a catastrophic collapse this week, plunging from just over $7 to $1.25 on Wednesday—a staggering 80% decline in under 24 hours. This crash followed an equally brutal sell-off on Tuesday, which saw the token slide from nearly $17. In total, LAB wiped out nearly 90% of its value in just 48 hours.
The financial fallout was swift: a market capitalization that exceeded $5 billion on Tuesday morning evaporated to just $390 million by 3:30 p.m. EST on Wednesday. The freefall prompted the LAB Trade team to address the panic on X, where they expressed disappointment and deflected blame toward external heavy-sellers:
“While today’s market activity is disappointing, our product roadmap and long-term focus remain unchanged. We’re seeing significant selling pressure from large market participants. Several independent trading firms also hold substantial LAB positions that are not affiliated with our team. We’re working closely with our liquidity partners and continue to monitor market conditions,” the team said on X.
With this crash, LAB joins a notorious lineup of volatile tokens, such as RAVE, RIVER and SIREN. Each of these projects experienced meteoric rises followed by near-instantaneous erasures, sparking widespread “pump-and-dump” allegations against their respective teams and murky distribution networks.
Crypto Sleuth Slams Centralized Exchanges
Prominent on-chain detective ZachXBT, who previously flagged suspicious insider loans and market-maker coordination back in May, blasted major centralized exchanges ( CEXs) for failing to protect retail investors. Taking to X, ZachXBT criticized the lack of proactive intervention:
“Disappointing to see how no action was taken by Binance, Bitget, and Gate earlier to prevent it. If CEXs cared, profits from the accounts manipulating the price would be distributed to users at a minimum. Unlocks for investors were scheduled to begin later this month, however, multiple late vesting changes occurred in the past.”
ZachXBT reiterated his previous warnings that insiders have effectively controlled the entire circulating supply, allowing market makers to orchestrate extreme price manipulation on major exchanges. His final advice to the community was blunt: avoid trading LAB under any circumstances.
ZachXBT Names RAVE, RIVER, SIREN, and LAB as Victims of Bitget-Enabled Market Maker Fraud
Blockchain investigator ZachXBT has renewed his assault on Bitget, accusing the exchange of knowingly enabling market makers to run supply…
ZachXBT Names RAVE, RIVER, SIREN, and LAB as Victims of Bitget-Enabled Market Maker Fraud
Blockchain investigator ZachXBT has renewed his assault on Bitget, accusing the exchange of knowingly enabling market makers to run supply…
ZachXBT Names RAVE, RIVER, SIREN, and LAB as Victims of Bitget-Enabled Market Maker Fraud
Blockchain investigator ZachXBT has renewed his assault on Bitget, accusing the exchange of knowingly enabling market makers to run supply…
-
Los Angeles, Ca27 minutes agoCalifornia teen e-biker baiting police to chase tracked by drone, arrested
-
Detroit, MI46 minutes agoOur picks for state\nSenate from Wayne Co. | Endorsements
-
San Francisco, CA56 minutes agoMan reported missing in San Francisco
-
Dallas, TX1 hour agoHow to buy France World Cup semifinal soccer tickets in Dallas
-
Miami, FL1 hour agoMiami-Dade Schools names six semifinalists for superintendent
-
Boston, MA1 hour agoLawsuit: ICE detained East Boston father despite legal status
-
Denver, CO1 hour agoVictor Marx wins GOP primary for Colorado governor, defeating veteran lawmaker after unorthodox campaign
-
Seattle, WA1 hour agoWidower of pregnant woman who was shot to death in Seattle sues homelessness authority
