The Texas authorities sentenced Jared Rice, Sr. (AriseBank’s CEO), to spend his upcoming five years behind bars. In addition to the jail period, the criminal is ordered to restore nearly $4,250,000 (the amount he scammed from the investors during his overall time of providing crypto-related schemes.
Jared Rice, Sr., following the previously held press release by the United States Justice Department, will be sent for the upcoming 60 months to jail. The AriseBank’s in charge, as well as the inventor of AriseCoin (native token), acknowledged having lured investors to participate in his crypto scheme with consequently stealing about $4 million valuing digital assets.
He lied to the consumers by saying that the world’s initial decentralized platform for banking was AriseBank. He also praised his cryptocurrency for this purpose, stating that the customers can acquire accounts that are insured by FDIC (Insurance Corporation for federal deposits) and the other traditional services for banking, including credit cards from the Visa brand. Though AriseBank did not possess a license for operating in the Texas State, there was no linkage between FDIC insurance, Visa, and AriseBank. Nonetheless, numerous investors were victimized by his scam following their collective purchase of roughly $4.2M value in AriseCoin comprising of the well-known digital assets such as fiat currencies, Litecoin, Ethereum, and Bitcoin.
When he got the opportunity, Rice consumed the funds of customers on his benefits like stays at luxurious hotels, a law attorney for family, food, and transportation. The high court of Texas ordered the criminal to restore all which he looted back to the owners. It has been mentioned by the Justice Department that the criminal did not confess to having participated in a recent business scheme on the internet.
It has been recently reported that another such scam case happened in Texas. At the start of July, a person named Mark Hopkins (he was also called Doctor Bitcoin) was found guilty for the charges leveled against him during operating an illegitimate scheme that related to cash-to-crypto. Presently, he is in jail for such actions. The accusations say that Hopkins was able to manage his business through the conversion of USD to crypto-assets, especially Bitcoin, by charging some fee. Nevertheless, he acknowledged that the process to verify the sources of cash was ignored by him many times. After admitting the guilt for these charges, his prison sentence got reduced to 5 years.