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FBI Arrest's AriseBank CEO for $ 4 million Crypto-Related Fraud

The American District Court of Texas has announced that AriseBank's CEO was arrested by the FBI on Wednesday for more…

The American District Court of Texas has announced that AriseBank’s CEO was arrested by the FBI on Wednesday for more than $ 4 million in cryptobased fraud.

Jared Rice, a 30-year-old resident from Dallas, Texas, claimed that hundreds of investors claimed that AriseBank would be the world’s “first decentralized banking service” based on a proprietary digital currency called AriseCoin.

The alleged lie raised more than 4 million dollars from hundreds of investors who were willing to catch some AriseCoins in the US banks. the company’s first coin offer (ICO). However, AriseBank was not authorized to conduct banking in the state of Texas or it was FDIC insured.

Rice also started collaborating with Visa to offer credit and debit cards to its customers. It was also a lie, according to court documents.

Rice then took the money from crypto investors and spent it for his personal interests, according to the statement issued by Erin Nealy Cox, the United States lawyer for the Northern District of Texas.

“Although he appointed AriseBank’s unprecedented benefits in press releases and online, Mr. Rice converted silent investment funds for his own use, spent money on hotels, food, clothing, a family lawyer and even a guardian litem,” read the statement.

Court documents also reveal that he allegedly wrongly claimed that the ICO had raised $ 600 million within a few weeks, instead of the $ 4 million raised by the ICO in reality.

The formal accusation for criminal behavior was provided by assisting US lawyers Mary Walters and Sid Mody, who prosecuted the case, following a investigation by the Federal Bureau of Investigations. US lawyer Nealy Cox is aware that currency issues take place and promise to be vigilant.

“My office is committed to maintaining the rule of law in cryptocurrency space. The northern district of Texas will not tolerate this kind of flagrant fraud &#821

1; online or offline,” said Nealy Cox.

Prior to the current accusation, Rice had been charged with incorrect charges in connection with an earlier Internet-related business system. According to the American lawyer, the defendant is up to 120 years in the federal prison, if convicted.

Related reading: Ex-CEO of Crypto Company Detected Prison for Finished $ 9 Million

In addition to the criminal charges, Rice is subject to a civil-law act filed by the SEC’s Regional Office in Fort Worth earlier this year, where he was accused of three bills of securities fraud and three accounts of wire fraud.

The trial was submitted at the end of January and then AriseBank had defended its model and suggested that its products can be purchased and sold without SEC monitoring.

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