AriseCoin’s CEO Sentenced Five Years in Prison for Crypto Scheme

The creator of AriseCoin has been recently sentenced to five years in prison and also $4 million for being a participating member in the project.

Jared Rice, a senior inventor of AriseCoin, has been sentenced to five years in prison for “defrauding investors for over $ 4 million”, according to a press release from the United States Department of Justice (DOJ). The news came from the U.S. Attorney Acting for Prerak Shah for the Texas Northern District.

Rice had settled a civil lawsuit involving Arisecoin, previously filed by the Fort Worth Office of the Securities and Exchange Commission (SEC).

Rice described features he could not provide,

In March 2019, the DOJ claimed that Rice was guilty of securities fraud. In Rice’s application, the defendant stated that he admitted to misleading and lying to investors. Rice said Arisebank was the first decentralized banking platform in the world to offer FDIC-insurance accounts to investors focused on AriseCoin. In addition to traditional cryptocurrency services, traditional banking services such as Visa credit cards are also offered.

As such, AriseBank is not licensed in Texas to carry out such operations, is not insured by the FDIC, and has no agreement with Visa for credit cards.

The time he was busy lying to investors about the false interests and motives of Arisebank, he took the investor’s money and used it to enjoy a luxurious lifestyle.

According to the investigation by the DOJ, this lifestyle would include hotels, food, transportation, a family lawyer, and an advertising guardian. He never disclosed this to his investors. He even denied the allegations that he had previously pleaded guilty to crimes committed as part of an Internet-related business scheme.

All this came to an end when he sold out his $4.25 million holdings in Arisecoin. As of now, these funds have been ordered to be seized by authorities for numerous fines.

The case is further being pursued by Assistant U.S. Prosecutors Mary Walters, Sid Mody, and Erica Hilliard.

U.S. Attorney Blue Cox spoke about the news and praised the Northern District of Texas’s innovative work to uphold the rule of law in the cryptocurrency space. Cox further added that the Texas State does not tolerate any instances of virtual or other fraud and theft.

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