In December 2023, Horst Jicha, the 64-year-old German national and co-founder of the notorious crypto-MLM venture USI Tech, was arrested as he attempted to enter the U.S. for a vacation in Miami, Florida. This arrest follows years of warnings and negative reviews issued by FinTelegram regarding USI Tech, headquartered in Dubai but founded in Germany by Mike Kiefer, Ralf Gold, Joao Severino, and the now-arrested Horst Jicha.
In January 2024, Horst Jicha was arraigned at a federal courthouse in Brooklyn, New York, on charges including securities fraud and conspiracies to commit securities fraud, wire fraud, and money laundering. Jicha’s indictment names USI Tech co-founders Ralf Gold and Joao Severino as co-conspirators. However, Mike Kiefer is not included in the indictment; he died in August 2023.
Read our reports on USI-Tech here.
US Attorney Peace highlighted the long arm of justice: “Although the defendant did not return to the United States for half a decade, my Office and the FBI worked to ensure that when he did, he would be brought to justice. Our Office is committed to prosecuting any criminal actor defrauding U.S. investors for their own gain, regardless of where in the world they may come from.“
Initially launched in Europe, USI Tech was promoted as an innovative platform that simplified cryptocurrency investments for the average investor, offering accessibility and guaranteed returns. However, it operated as a classic MLM scheme where the capital of new investors funded the returns of earlier investors. This model relied heavily on these new investors to recruit further participants.
Read more about the USI Tech scheme here on BehindMLM.
The unraveling of USI Tech began in early 2018 when it faced regulatory scrutiny and abruptly ceased all operations in the United States. This sudden closure left many investors unable to access their funds, leading to significant financial losses. Investigations revealed that a large sum of the investors’ money, including Ether and Bitcoin valued at approximately $150 million at the time of Jicha’s arrest, had been transferred to cryptocurrency deposit addresses controlled by Jicha.
This case underscores the risks associated with MLM schemes in the crypto sector, highlighting the importance of regulatory oversight and the need for investor caution. FinTelegram’s prior warnings about USI Tech‘s operations were an early indicator of the potential risks involved, which have now culminated in serious legal repercussions for one of its key operators.
Report Information
If you have any information about USI Tech, its operators, and facilitators, or if you are a victim, please let us know via our whistleblower system, Whistle42.
