The AriseBank CEO Jared Rice Sr has been sentenced to five years in jail because of a $4 million crypto scheme. The US DOJ announced the decision in a press release as we are reading more in today’s cryptocurrency news.
Rice is the inventor of the cryptocurrency AriseCoin and the AriseBank CEO and it became the world’s “first decentralized banking platform” based on proprietary digital currency. Jared Rice, 33, has been once accused in a civil action by the fort worth office of the Securities and Exchange Commission in 2018, and he pled guilty to a count of securities fraud in 2019. Now, US District Judge Ed Kinkeade sentenced him to pay $4,258,073 in restitution. In his plea papers, he admitted that he lied to the investors that Arisebank could offer consumers “FDIC-insured accounts and traditional banking services like visa-brand credit Cards.” this was in addition to the crypto services that it offers but Arisebank didn’t have permission to conduct these businesses in Texas. The Federal Deposit Insurance Corporation had not insured the company’s business and on top of that, it had no deal with visa or credit cards.
Rice converted the investor’s funds for his own use and spent most of the money on hotels, food, and transportation. He also failed to disclose that he plead guilty to state felony charges in connection with the prior internet-related business scheme as the DOJ stated. He added:
“Hundreds of investors bought approximately $4,250,000 in Arisecoin using digital currencies like Bitcoin, Ethereum, and Litecoin, as well as fiat currency.”
When Rice pleaded guilty in 2019, US attorney Nealy Cox said:
“I’m proud of the Northern District of Texas’ innovative work enforcing the rule of law in the cryptocurrency space. We will not tolerate flagrant deception of investors – virtual or otherwise.”
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation as US Attorneys Mary Walters, Erica Hilliard and Sid Mody prosecuted the case. As we reported recently, A Swedish scammer named Roger Nils-Jonas Karlsson got jailed for 15 years for conducting a $16 million crypto scam. Karlsson was jailed for 15 years for scamming people into a $16 million crypto scam as the US Department of Justice said. Roger Nils-Jonas Karlsson who is 47, pleaded guilty to securities fraud, wire fraud, and money laundering charges.
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