Wednesday, January 22, 2020

AriseBank CEO Pleads Guilty On $4.2 Million Cryptocurrency Fraud

Elizabeth Jamie
Jamie Elizabeth is a Mass Communication Graduate from the Philippines, knowledgeable in the field of cryptocurrencies, blockchain etc., currently enjoying freelance writing, and able to write anything under the sun.

After several months passed, AriseBank CEO, Jared Rice finally admits crimes and pleads guilty in court.

AriseBank CEO Pleads Guilty

On March 20, the now-defunct AriseBank CEO Rice appeared in the Texan court and pleaded guilty on defrauding his investors, reaching an amount of $4.2 million.

According to Dallas News, Rice submitted a plea agreement in the court wherein he detailed his crimes of ‘scamming hundreds of investors into buying AriseCoin cryptocurrency with cash or popular digital currencies BitCoin, Ethereum and LiteCoin.’

In his statement, the money that he admittedly collected through scams, unfortunately, had already been used on his leisure expenses with his girlfriends and lawyers.

Due to this, the charges against him were firmly filed in the court as his investors demand reimbursement from the stolen funds.

The admission of Rice on his crimes was seen as first of its kind since virtual currencies were still new for most people. Still, Erin Nealy Cox, U.S. attorney for the Northern District of Texas, stated his tough regulatory system against frauds and scammers like Rice.

“We will not tolerate flagrant deception of investors, virtual or otherwise,” Nealy Cox said in a statement.

When And Where It Started

The issues against AriseBank started back in January 2018 wherein the Texas Department of Banking filed a report against the crypto company. This is due to their false brand naming of putting ‘bank’ on their name even without any affiliations with any banks nor any services related to it.

What’s more intriguing is the company’s promise to its investors of ‘no risk returns of 10 to 20 percent’ on each of their invested money.

Adding gas to the flame, AriseBank even released an announcement of raising $600 million from its newly-launched ICO. This news alarmed not just the Texan government but the US Securities and Exchange Commission (SEC).

FBI Arrested Rice

On November 2018, as also reported in BTCNN, FBI finally arrested Rice due to his crimes against crypto fraud and scamming hundreds of his investors on his ‘too good to be true’ offers.

After sometime, the court forces Rice and his business partner, Stanley Ford to pay fines of $2,259,543 in disgorgement, $68,423 in prejudgment interest, and a penalty of $184,767 each.

Repercussions of Fraud Crimes

As of now, since Rice already pleaded guilty in the court, the defrauded investors are expected to receive money from damages and reimbursement from their stolen investments.

Not just this, Rice and his partners in AriseBank are said to face up to 20 years in prison once his sentence starts on July 11, 2019.

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