AriseBank launched a scheme which was a fake scheme. They promised to provide brand name credit cards and federally insured accounts. Erin Nealy Cox, U.S. Attorney for Northern Texas district reveals the CEO, Jared Rice Sr, was indicted on three counts each of wire fraud and securities fraud.
In the start of 2018, SEC received an emergency court order to stop AriseBank’s ICO, which had already claimed to have raised $600 million until then.
Jared Rice claimed that AriseBank would offer FDIC-insured accounts, traditional banking services, banking services, and cryptocurrency services. Also explained that his company is the world’s first decentralized Banking platform based on AriseCoin.
It then unveiled that AriseBank didn’t have any authority to carry out banking services in Texas. Jared Rice fakes about his company through press releases and online publishing. Thus, accumulated millions of dollars. He then used these funds for personal use, which included food, clothing, hotel accomodations and many more. He literally spent these funds on his girlfriend as well.
And thus he was successful in raising $4.25 million between June 2017 to January 2018. He raised these funds from various investors in Bitcoin, Litecoin and Ethereum. Suppose if Jared Rice is convicted on all six counts, he can be prisoned up to 120 years of federal prison time.
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