Cryptocurrency Scam Suspect Escapes House Arrest

According to CNBC, Horst Jiha, a German citizen who was under house arrest after being accused of running a $150 million cryptocurrency fraud scheme, has disappeared.

Jiha was sequestered in his New York residence, released on $5 million bail, which was secured by his wife and children. However, he is alleged to have tampered with his ankle bracelet and disappeared, as reported by the US Attorney’s Office in a statement to the court.

The defendant is due to stand trial in March on multiple counts of securities fraud and conspiracy related to a multi-level marketing operation called USI Tech. Jicha was arrested in Florida last December.

The $150 million figure refers to “missing funds in the scam” that were held in Ethereum and Bitcoin, according to the report. He reportedly defrauded investors by guaranteeing a 140% return within 140 days by investing in Bitcoin mining or trading operations.

A U.S. Attorney’s Office representative indicated that the prosecution intends to forfeit the guarantee.

While his current whereabouts remain unknown, court records indicate he previously lived in Spain and Brazil.