The Justice Department of the North District of Texas issued a news on the US Department of Justice (DOJ) website on November 28, saying that AriseBank CEO Jared Rice, Sr. was arrested on Wednesday by the FBI for defrauding investors of $4 million .
Earlier this year, the US Securities and Exchange Commission also filed a civil lawsuit against Rice, 30. At the time, Rice was charged with three securities fraud offences and three wire fraud offences.
According to a press release issued by the US Department of Justice (DOJ), Rice said to potential investors that AriseCoin, the proprietary cryptocurrency, will be the world’s “first distributed banking platform.” Not only provides cryptocurrency services to customers, but also traditional banking services including Visa credit cards and savings cards. However, AriseBank does not authorize the operation of banks.
Rice fraud investors said their initial cryptocurrency issue (ICO) has raised $600 million. He not only used the funds for private use, but also used it as a daily hotel, food, and even a lawyer’s fee. Lawyer Nealy Cox said,
The northern part of Texas will not tolerate this kind of blatant deception, whether online or offline.”
If convicted, Rice will face a federal prison sentence of 120 years.
According to CoinTelegraph’s report yesterday, the Texas Securities and Exchange Commission issued an emergency stop order for the encryption investment company My Crypto Mine. At the same time, the Texas Securities Commission issued a cessation order to another encryption company this month as it sold unregistered securities to Texas residents.