The inventor of AriseCoin has just received a 5-year prison sentence for involving in a securities fraud.
Jared Rice gets a five-year prison term
The inventor of cryptocurrency AriseCoin has been sentenced to five years in prison for committing securities fraud. This is according to a press release by the United States Department of Justice yesterday.
Jared Rice was sentenced to five years in prison by U.S. District Judge Ed Kinkead after admitting to duping investors over $4 million. The press release said, “According to his plea papers, Mr. Rice, 33, admitted he lied to would-be investors, claiming that AriseBank – billed as the world’s “first decentralized banking platform” based on the proprietary digital currency AriseCoin – could offer consumers FDIC-insured accounts and traditional banking services, including Visa-brand credit cards, in addition to cryptocurrency services.”
AriseBank lacked a banking license
According to the Justice Department, AriseBank was not authorized to carry out banking activities in Texas, it lacked FDIC insurance and didn’t have any partnership with Visa. Rice proceeded to covert investors’ funds for his personal use. He spent most of the funds on hotels, food, transportation, a family law attorney and more.
Hundreds of investors lost their money to the fraudulent scheme. However, the court ordered Rice to pay $4,258,073 in restitution. The Justice Department revealed that Rice was previously involved in a fraudulent internet-related business scheme.