Horst Geisha, a German national accused of orchestrating a $150 million cryptocurrency fraud scheme, is on the run after failing to appear in federal court in Brooklyn.
Gisha was reportedly under house arrest at his New York City home, after taking out a $5 million bond secured by his domestic partner and children.
Trial set for March 31
According to A a report From CNBC, Gisha was expected to appear in court for a pretrial hearing but did not show up, prompting the Brooklyn U.S. Attorney’s Office to begin searching for him. “There is a very active investigation underway to arrest him,” police spokesman John Marzoli said. The office.
In addition to seeking forfeiture of bail, prosecutors aim to recover the $4 million portion that was “personally guaranteed” by Geisha’s partner and family members, all of whom reside in Germany.
Jicha is suspected of tampering with his ankle monitor on October 3, leading to concerns about him compliance With court conditions of release. Pretrial Services sent him directions to visit its office the day after the device malfunctioned, but he failed to attend.
Facing multiple charges of securities fraud and conspiracy in connection with a multi-level marketing scheme known as USI Tech, Jicha’s trial is scheduled for March 31.
Cryptocurrencies linked to Jicha fraud scheme
Prosecutors also allege that he misled retail investors by promising average returns of 140% over 140 days, claiming they could profit through investments in alleged Bitcoin (BTC) mining and Trading operationsas well as by recruiting others to purchase USI Tech products.
However, investigators contend that the platform was merely a “front,” with Jicha ultimately siphoning off millions of investors’ funds.
FBI Assistant Director James Smith said in January that Gisha “stole millions of his investors’ money and fled the country” after the scheme began to unravel. As of now, Geisha’s whereabouts are unknown, although court records indicate he previously lived in Brazil and Spain before his arrest in Florida in late 2023.
Jisha was released on bail in January on strict conditions, which included remaining in New York City or Long Island and surrendering all travel documents. His partner, Iwa Giisha, served as his guardian, responsible for reporting any violations of his release conditions.
The USI Tech scheme, which was launched in Europe and marketed in the US starting in 2017, has been described as a “multi-level marketing operation” that relies on recruiting new investors to maintain returns for previous investors.
After confrontation Regulatory auditUSI Tech ceased its US operations in early 2018, leaving investors unable to access their funds and resulting in significant financial losses.
According to the report, much of the money missing from the cryptocurrency scheme, estimated at around $150 million at the time of Jicha’s arrest, was held in cryptocurrency assets such as Ethereum (ETH) and Bitcoin, which were transferred to… Digital wallets It is controlled by Jicha after the company’s operations end.
At the time of writing, BTC, the largest cryptocurrency on the market, is trading at $62,730.
Featured image of DALL-E, chart from TradingView.com
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