On November 28, the director general of the AriseBank cryptocurrency firm was arrested by the FBI for allegedly deceiving hundreds of investors. This was reported in a press release by the US Attorney's Office for the Northern District of Texas, published on the website of the US Department of Justice (DOJ) on November 28.
The detained CEO, 30-year-old Jared Rice, was previously the subject of a civil lawsuit filed by the US Regional Office for Securities and Exchange (SEC) in February and was charged with three counts of fraud.
In a few weeks of cheating Rice, he collected 600 million dollars.
Without revealing his previous conviction for a criminal offense in connection with a separate network business scheme, Rice asked investors to buy a tokenToken
– is an accounting unit that is used to represent a digital balance in an asset.Details using basic cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and fiat currency.
As for AriseBank, Rice said that the bank can offer customers "accounts of the insured FDIC and traditional banking services, including Visa-brand credit and debit cards, as well as cryptocurrency services".
Yesterday, a lawyer said that Rice was in fact not authorized to offer banking services in Texas, did not have access to FDIC insurance, and had no partnership with Visa at all.
Rice is supposed to have created "nonexistent" advantages for AriseBank in printed press releases and on the Internet and using the funds of investors for their own personal purposes.
If convicted, Mr. Rice faces a sentence of up to 120 years in federal prison.
Editor: Yuliya Soroka