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FBI arrests AriseBank CEO for $ 4 million crypto-related fraud



The US Attorney for the Northern District of Texas announced Wednesday that the AriseBank CEO has been arrested by the FBI for more than $ 4 million related to crypto attacks.

The CEO of AriseBank is US Attorney for up to 120 years

Jared Rice, a 30-year-old resident of Dallas, Texas, allegedly deceived hundreds of investors by claiming that AriseBank was the world's largest first decentralized banking platform based on a proprietary digital currency called AriseCoin.

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

The alleged lie brought in more than $ 4 million from hundreds of investors willing to get some AriseCoins in the bank's first edition of the firm (ICO). However, AriseBank was not authorized to provide banking services in the state of Texas, nor was FDIC insurance.

Rice's startup company also claimed to have worked with Visa to offer credit and debit cards to its customers. According to court documents, this was also a lie.

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

"Even as he denounced AriseBank's non-existent benefits in press releases and on the Internet, Mr. Rice converted the funds to investors for his personal use and spent the money on hotels, groceries, clothing, a family lawyer's lawyer, and even one Guardianship from litem, "it says in the statement.

The court records indicate that he allegedly falsely claimed that the ICO had raised $ 600 million within a few weeks instead of the $ 4 million the ICO actually levied.

The Formal Criminal Charge The conduct was filed by US Assistant Attorneys Mary Walters and Sid Mody, who prosecuted the case following an investigation by the Federal Bureau of Investigations. US Attorney Nealy Cox is aware of digital currency fraud and promises to remain vigilant.

"My office is committed to enforcing the rule of law in the area of ​​cryptocurrency. The northern district of Texas will not tolerate this kind of blatant deception ̵

1; online or offline, "said Nealy Cox.

Prior to the current lawsuit, Rice had pleaded guilty to charges in connection with a previous internet-related business project. According to the US Attorney, the accused is available in the Federal Penitentiary for a sentence of up to 120 years.

Related Reading: Ex-Chief Executive Officer of the Crypto Company Sentenced to Prison, Fined $ 9 Million

In addition to the criminal charges, Rice is the subject of a civil suit this year SEC's regional office in Fort Worth. There he was charged with three frauds and three wire frauds.

The lawsuit was filed By the end of January, AriseBank had defended its model and suggested buying and selling its products without SEC oversight.

  Featured image from Shutterstock. 

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