The CEO of the cryptocurrency scam, AriseCoin that allegedly duped $4 million from investors, has been sentenced to five years behind bars. Jared Rice, the founder and the CEO of AriseCoin, was arrested in 2018 for defrauding investors into believing he had founded the world’s first decentralized banking platform. In a press release by the U.S. Department of Justice, Prerak Shah, the Acting Attorney for the Northern District of Texas, announced the sentencing of the 33-year-old on August 25.
AriseCoin CEO was charged with three counts of wire fraud and three counts of securities fraud.
The founder of AriseCoin, Jared Rice, was arrested in November 2018 by the FBI while he was the acting CEO of the fraudulent firm. He was charged with three counts of wire fraud and three counts of securities fraud. Rice had an earlier run-in with U.S. authorities, particularly the U.S. Securities and Exchange Commission, which sued him a year earlier for fraud and illegally issuing securities. Rice was slapped with a $2.7 million fine by a U.S. federal court in 2018.
Rice pleaded guilty to securities fraud and swindling $4.2 million from hundreds of investors.
In 2019, Rice pleaded guilty to securities fraud and swindling $4.2 million from hundreds of investors. Following this plea, AriseCoin CEO has now been sentenced to a jail term and ordered to pay $4,258,073 in restitution by U.S. District Judge Ed Kinkeade. In his 2019 guilty plea, Rice admitted to lying to potential investors and claiming that AriseBank was the world’s “first decentralized banking platform.” He claimed that AriseBank could offer FDIC-insured accounts and all the other traditional banking services, including issuing Visa credit cards. It would also provide crypto services, with all these services powered by a proprietary digital currency—AriseCoin.