120 year prison sentence for crypto scam

The CEO of AriseBank allegedly told investors the company could offer Visa-brand credit cards and crypto services…

Jared Rice, CEO of crypto company AriseBank, has been sentenced to 120 years in prison for accumulating $4 million from investors in a crypto scam.

As reported by Coin Telegraph, Rice was arrested by the FBI on Wednesday. According to Northern District of Texas US Attorney Erin Nealy Cox, Rice reportedly told potential investors that AriseBank could offer  FDIC-insured accounts and Visa credit cards, as well as other crypto services.

Rice also alleged that the company’s ICO had raised $600 million in a few weeks, and did not disclose that he’d plead guilty to previous felony charges in connection with another internet business scheme.

However, documents from the US Department of Justice suggest that AriseBank hadn’t agreed anything with Visa, nor had it been insured by the FDIC, or liscenced to work in Texas.

“My office is committed to enforcing the rule of law in the cryptocurrency space,” Nealy Cox said in a statement. “The Northern District of Texas will not tolerate this sort of flagrant deception – online or off.”

In March, the US Securities Exchange Commission issued a cease-and-desist order to Arisebank, after Rice and co-founder Stanley Ford failed to disclose all the company’s properties and assets during their ICO this January. They were charged shortly after with fraud and giving out unregistered securities.

With ICO charges seemingly on the rise with companies such as Airfox, Paragon and Crypto Asset, American authorities have been looking to establish firm rules when handling digital currencies. Earlier this month, the American Securities and Exchange Commission issued some conctete rules for cryptocurrency, that requires platforms trading in digital asset securities to register with the SEC as a national securities exchange.

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