Crypto scammer disappears from NYC after $5M bond.IC3: FOMO-fueled crypto fraud losses to hit $5.6B in 2023.
Horst Zicha, a German national accused of running a $150 million crypto scam, has reportedly disappeared from his New York City residence on $5 million bond.
Zicha, who claims to be offering lucrative cryptocurrency investments through his company USI Tech, is now facing charges of securities fraud and conspiracy.
But when his ankle monitor mysteriously stopped working on Oct. 3, he had a chance to avoid a scheduled court appearance—while authorities were trying to track him down.
Zicha allegedly invested in a scam with promises of 140% returns from crypto investments, luring unsuspecting investors into a classic Ponzi scheme through the USI tech platform.
According to FBI Assistant Director in Charge James Smith“The platform was just a facade”, allowing Zicha to “steal millions of his investors' money and flee the country”.
Crypto fraud on the rise
According to the latest FBI Internet Crime Complaint Center (IC3). ReportCrypto-related complaints skyrocketed in 2023.
It highlighted that there were more than 69,000 reports of crypto fraud involving losses of more than $5.6 billion.
While crypto complaints account for only 10% of all financial fraud reports, they account for nearly half of all financial fraud losses.
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The “fear of missing out” on crypto profits has made it easier for criminals to target consumers and retail investors, the report said.
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