- The person behind
cryptocurrency AriseCoin was sentenced to five years in federal prison by the US Department of Justice. - AriseCoin CEO Jared Rice masterminded a scheme that swindled investors out of more than $4 million.
- Rice, 33, pleaded guilty to one count of securities fraud in March 2019.
The person behind cryptocurrency AriseCoin was sentenced to five years in federal prison by the US Justice Department for mastermiding a scheme that swindled investors out of more than $4 million.
AriseBank CEO Jared Rice, Sr. was also ordered to pay $4,258,073 in restitution by US District Judge Ed Kinkeade on $4. $4 was first to report.
Rice, 33, $4 to one count of securities fraud in March 2019, making him one of the first individuals who pleaded guilty to securities fraud involving a cryptocurrency in US federal court, according to the department. He was $4 in Texas in 2018.
The scheme was built on the claim by Rice that AriseBank was the world's "first decentralized banking platform" based on the proprietary digital currency AriseCoin, the DOJ said.
Rice would tell investors they could open accounts insured by the Federal Deposit Insurance Corporation and use traditional banking services such as credit cards linked to $4.
The claims were false, and Rice, according to the DOJ, was not FDIC insured and was not a Visa partner.
Still, hundreds of investors believed him and bought approximately $4,250,000 in AriseCoin using digital currencies like $4, $4, $4, as well as fiat money.
Rice then covertly converted these funds for his own personal use, according to the DOJ, instead of putting them with his bank. He spent the money on hotels, food, transportation, and a family law attorney.
Rice also failed to disclose that he pleaded guilty to state felony charges in 2018 in relation to an internet-related business scheme.
In the same year, Rice $4 a civil action for a fraudulent initial coin offering involving AriseCoin.
Cryptocurrency fraud schemes have been on the rise as digital assets gain popularity, and fraudsters have become creative in how they swindle people.
Some instances have included fraudulent cryptocurrency $4, $4, $4, and criminals $4.