The FBI Arrest AriseBank CEO For Cryptocurrency Fraud Of $ 4 Million

The North Texas District Lawyer announced that the FBI on Wednesday arrested AriseBank's chief executive for more than $ 4 million in encrypted cryptography fraud.

US lawyer, Jared Rice, CEO of AriseBank, risks up to 120 years in prison

Jared Rice, a 30-year-old Dallas, Texas resident, allegedly deceived hundreds of investors by claiming that AriseBank would be the "first decentralized banking platform" in the world based on an exclusive digital currency called AriseCoin.

His white paper promised the bank's clients secure accounts from the Federal Deposit Insurance Corporation (FDIC) and traditional banking services.

The alleged lie would have raised more than $ 4 million from hundreds of investors willing to get hold of AriseCoins as part of the company's initial offer of coins (ICO). AriseBank, however, was not allowed to provide banking services in the state of Texas and was not insured by the FDIC.

Rice's startup also claimed to have partnered with Visa to offer credit and debit cards to its customers. It was also a lie, according to court documents.

Rice then took the money raised from cryptocurrency investors and spent it on her personal interests, according to the statement released by Erin Nealy Cox, US Attorney for the Northern District of Texas.

"Even though he touted the non-existent benefits of AriseBank in press releases and online, Rice quietly converted investors' funds for his personal use, spending money on hotels, food, clothing, family law attorney and even ad litem guardian ", the statement read.

Court documents also reveal that he allegedly falsely claimed that the OIC had collected $ 600 million in just a few weeks, instead of the $ 4 million actually collected by the ICO.

The official charge of criminal conduct was presented by US deputy attorneys Mary Walters and Sid Mody, who are pursuing the case, following an investigation by the Federal Bureau of Investigations. US lawyer Nealy Cox is aware of digital currency fraud and is committed to staying vigilant.

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

Prior to the current indictment, Rice had pleaded guilty to felony charges under a previous Internet – related commercial program. According to the US lawyer, the defendant incurs up to 120 years in a federal prison, if found guilty.

Related reading: The ex-CEO of Crypto Company fined $ 9 million to jail for fraud

In addition to criminal prosecution, Rice was the subject of a civil suit filed earlier this year by the SEC's regional office in Fort Worth, where he was indicted on three counts of securities fraud and three counts. wire fraud.

The complaint was filed at the end of January and AriseBank then defended its model and suggested that its products could be bought and sold without the SEC's control.

Selected image of Shutterstock.

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