The United States lawyer for the North District of Texas announced that AriseBank's CEO was arrested by the FBI on Wednesday for more than $ 4 million of fraud related to cryptography.
The CEO of AriseBank, Jared Rice Faces of up to 120 years in federal prison, says United States lawyer
Jared Rice, a 30-year-old resident of Dallas, Texas, allegedly cheated hundreds of investors claiming that AriseBank would be the "first decentralized banking platform" in the world based on a proprietary digital currency called AriseCoin.
His whitepaper promised that the bank's clients obtain the insured accounts and the traditional banking services of the Federal Deposit Insurance Corporation (FDIC).
The alleged lie raised more than $ 4 million from hundreds of investors willing to hold some AriseCoins in the company's initial currency offer (ICO). AriseBank, however, was not authorized to perform bank services in the state of Texas nor was it secured by FDIC.
The start of Rice also claimed to be associated with Visa to offer credit and debit cards to its customers. That was also a lie, according to judicial documents.
Consequently, Rice took the money generated by the investments of the encryption and spent it for his personal interests, according to the statement published by Erin Nealy Cox, a lawyer from the U.S. UU. For the North District of Texas.
"Although he has granted the nonexistent benefits of AriseBank in the press releases and online, Mr. Rice would silently transform the investor's funds for personal use, spending money on hotels, food, clothing, family lawyer and even an ad litem guardian ". the statement to you.
The trial documents also reveal that allegedly falsely claimed that the ICO would raise 600 million dollars in a few weeks, instead of the $ 4 million that ICO raised today.
The formal accusation of criminal conduct was filed by United States lawyers Mary Walters and Sid Mody, who are suing the case after a survey conducted by the Federal Bureau of Investigation. The United States lawyer, Nealy Cox, is aware of the digital currency fraud that develops and promises to keep his watch.
"My office is committed to enforcing the rule of law in the space of criptocurrency. The North District of Texas will not tolerate this type of flagrant deception – either online or off," said Nealy Cox.
Before the current indictment, Rice pleaded guilty to accusations of serious crimes in connection with a previous business-related internet schema. According to the lawyer of the United States, the accused faces up to 120 years in federal prison, he is condemned.
Related reading: Former CEO of Crypto Company sentenced to imprisonment for fraud, fined $ 9 million
In addition to criminal charges, Rice is subject to a civil action filed by the regional office of the province of Fort Worth earlier this year, where he was charged with three charges for title fraud and three charges of telephone fraud.
The suit was filed in late January and, at the time, AriseBank had defended its model and suggested that its products could be bought and sold without SEC supervision.
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