Thursday, April 25, 2019

FBI Arrests Crypto Bank CEO for ICO Fraud

US citizen, Jared Rice, and CEO of AriseBank has been arrested and is currently being tried by the US Department of Justice, after a recent ICO fraud.

Long Long Year

Jared’s Rice arrest is no shocking one, having been cooking (no pun intended) up all year long, after the witty entrepreneur first came to SEC’s attention in January this year. SEC came hot on the heels of AriseBank (which is obviously not a conventional bank) after the cryptocurrency firm promised inviting but false details to its potential investors. The firm afterward allegedly raised more than $600 million of its $1 billion budget (this is, however, questionable given the figures were released by AriseBank itself). The US SEC, which in history has not taken lightly to firms and companies claiming affiliation and approval by the regulation body, filed a number of charges against the fraudulent establishment. Rice who had earlier been accused of stealing funds and forgery of government records has a substantial criminal record, along with some of the executives of AriseBank. This, however, was intentionally omitted by Rice and his executives during the firm’s Initial Coin Offering; a stick which the SEC continued to brand during its case against Rice.

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It is quite appalling however that Rice and his company were able to raise triple figures in millions of dollars despite Rice’s criminal history, in what the SEC simply attributed to negligence on the investors’ part since a little research would have yielded warning signs. It is also interesting that despite the huge amount of dollars Rice had stolen and reportedly lavished, he had failed to use some of it to scrub his arrest records clean. SEC promptly pointed out some of the methods Rice and his colleagues employed to lure investors, such as the false claim that it purchased an FDIC-insured bank which would enable its customers to possess FDIC-insured accounts. It also successfully sold the lie that its customers could possess special VISA card customized for AriseBank which would allow them to spend any cryptocurrency available on the market whatsoever!

Rice’s Final Arrest

After reportedly embezzling about $4 million, the FBI finally apprehended Jared Rice this week. The fraudulent CEO is said to have embarked on a significant spending spree and had also paid his family attorney in what was an attempt to deal with his domestic problems. An excerpt from the statement released by the Department of Justice read:

“Even as he touted AriseBank’s nonexistent benefits in press releases and online, Mr. Rice quietly converted investor funds for his own personal use, spending the money on hotels, food, clothing, a family law attorney, and even a guardian ad litem.”

Rice’s case is still under trial and is yet to reach a conclusion as of press time.

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