FBI Arrest Cryptocurrency CEO for Defrauding Investors for $ 4 Million

The US Federal Bureau of Investigation (FBI) recently arrested the CEO of the cryptocurrency platform ArisBank for defrauding investors for $ 4 million, via an initial offer of parts based on misrepresentations .

According to an announcement by the North Texas District Attorney's Office, 30-year-old Jared Rice Sr. defrauded investors by claiming that the firm claimed to be the "first decentralized bank in the world." ", offered to a bank insured by the FDIC accounts and credit and debit cards related to Visa. This, as well as cryptocurrency-related services based on its own AriseCoin token.

Rice is now charged with three counts of securities and frauds and three counts of wire fraud. The Securities and Exchange Commission (SEC) suspended the project and froze its assets several months ago, arguing that AriseBank's claims were false.

According to the Department of Justice, the firm does not have any partnership with Visa, is not licensed to do banking in Texas and is not insured by the FDIC. Rice himself was also accused of lying about collecting $ 600 million in "just a few weeks" through the organization's ICO, and reportedly spent money for his personal use: food, clothing, family law lawyer, etc.

In this announcement, Erin Nealy Cox, the US lawyer in North Texas, reportedly said:

My office is committed to enforcing the law in the cryptocurrency space. The North Texas District will not tolerate this kind of blatant disappointment – online or offline.

AriseBank and AriseCoin were founded last June and have been advertised in press releases, interviews, social media and on their own websites. According to the prosecutor's office, Ms. Rice would now have more than 120 years in prison.

As CoinDesk pointed out, Rice was sued in January by the SEC, along with co-founder Stanley Ford, for fraud and issuance of unregistered securities. At the time, the Texas Banking Department issued a cease and desist order against the company.

The complaints filed in February show that Rice is currently on probation under a plea agreement reached after her charge of stealing and falsifying government records. He is also on a felony charge after allegedly assaulting a victim and attempting to destroy evidence by stealing his phone to remove incriminating files.