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Jared Rice Sr., co-founder and former CEO of the crypto start-up AriseBank, pleaded guilty to a head of securities fraud in a federal court on Wednesday afternoon. Prosecutors said Rise, 30, had deceived investors with $ 4.25 million, using the money for various personal and legal expenses. Under the terms of the agreement, Rice would spend 60 months in prison. However, if a judge had to decide differently when sentencing in July, he could leave until 20 years of age.
As a character, Rice admitted to lying to potential investors in AriseBank, which owned its own cryptocurrency, AriseCoin, and touted itself as the "first decentralized banking platform in the world." Rice falsely claimed that AriseBank, officially approved former heavyweight boxing champion Evander Holyfield, could offer FDIC insured accounts and banking services such as Visa credit cards. Rice settled a civil suit involving AriseCoin filed by the SEC last year.
When BREAKERMAG spoke to Rice in September 2018, he was waiting to be indicted at any time in what he called "the most legendary case in the history of crypto" . (He ended up being arrested by the FBI in November.) Struck a defiant tone. "I come from nothing," he said. "I grew up in the rough neighborhoods of the city and therefore I have a different behavior from that of most men in this sector. I do not compromise. I do not take anything. "
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He spoke of leading a "spiritual war": "It will be a long fight, man. I will probably be in the headlines of all the newspapers in a few weeks, every time they have a grand jury. They can blame a ham sandwich. I'm ready for that, man. It's gonna be fun."
At the time, Rice had also claimed that AriseBank was not a scam and that "the majority, if not all" of its investors "kept talking to me all the time". When he will be sentenced this summer, Rice is expected to be obliged to repay his investors.
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