Arisebank’s CEO, who was billed as the “world’s first decentralized bank platform,” has been sentenced for five years and ordered to pay $4258,073 in restitution. He admitted to lying to investors and quietly converting their cryptocurrency for his own use.
The CEO of “the World’s First Decentralized Banking Platform” is headed to Jail
The U.S. Department of Justice (DOJ), announced Wednesday that Jared Rice Sr., Arisebank CEO, was sentenced to five years imprisonment in a “$4 Million crypto scheme.” Prerak Shah, Acting U.S. Attorney for the Northern District of Texas, made this announcement:
Arisecoin’s creator was sentenced today for defrauding investors of more than $4million. He was sentenced to five years imprisonment.
Rice, 33, settled a U.S. Securities and Exchange Commission’s (SEC) civil action last year involving Arisecoin’s initial coin offering in 2018. In March 2019, he pleaded guilty to one count of securities fraud.
The Justice Department reported that U.S. District Judge Ed Kinkeade issued a $4,258,073 restitution order on Wednesday.
According to the plea papers, Rice admitted that he had lied to investors and that Arisebank could offer traditional banking services to consumers, such as Visa-brand credit cards and FDIC-insured accounts. The DOJ also noted that Arisebank was “billed by the world’s first decentralized banking platform.” ”
The Department of Justice stated that Rice was promoting Arisebank’s nonexistent benefits, but he “quietly converted investor funds for himself, using the money to travel, hotels, food, and a family lawyer, as well as a guardian of litem – facts that he did not disclose to investors.”
Rice “failed to disclose that” he had pleaded guilty to state felonies in connection to a prior internet-related scheme,” said the DOJ.
Arisecoin was purchased by hundreds of investors using digital currencies such as bitcoin, ethereum and litecoin as well as fiat currencies.
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