Business 22 March 2019

Ed Drake

AriseBank CEO pleads guilty to $4.2M fraud

The CEO of a cryptocurrency company has pleaded guilty to swindling $4.2 million from unsuspecting investors, in the latest example of unscrupulous activity in the crypto space.

Jared Rice, CEO at AriseBank, was arrested by FBI enforcement officers in December on charges of wire fraud and securities fraud, in relation to the activities of the firm. The case is the latest example of law enforcement clamping down on frauds and scams in the cryptocurrency sector.

In a statement, U.S. Attorney for the Northern District of Texas Erin Nealy Cox said Rice put forward a confession and guilty plea.

Amongst the charges levelled at Rice and AriseBank were claims the firm was offering “FDIC-insured accounts and traditional banking services, including Visa-brand credit and debit cards, in addition to cryptocurrency services.”

Rice entered a guilty plea to one charge of securities fraud, but could have implicated himself in lying to investors during his time at AriseBank.

The disgraced CEO had been facing a maximum term of 120 years in jail, which has subsequently been reduced to 20 years on account of the guilty plea.

AriseBank was involved in scamming some $4.25 million from crypto investors, and based on the judicial outcome, Rice may be required to repay the full amount. Rice will be sentenced in July.

The charges follow on from fines of $2.7 million resulting from the allegedly scam initial coin offering (ICO), a matter in which both AriseBank and Rice were implicated, alongside the firm’s COO Stanley Ford.

AriseBank has been attracting legal trouble across the United States, with Texas regulators recently issuing a cease and desist against the firm for operating in the state without the required permissions.

This follows similar action against the now-collapsed BitConnect, as part of a wider crackdown on rogue cryptocurrency operators.

Prosecutors said the guilty plea had set a new precedent for the emerging cryptocurrency sector, noting, “Given the fairly recent emergence of cryptocurrency, Rice’s guilty plea is one of the first of its kind in the U.S.”

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

COMMENT

latest news

The Bitcoin Vision: Episode 10

Business 18 April 2019

The Bitcoin Vision: Episode 10

Founding President of the Bitcoin Association Jimmy Nguyen is back in London for this week’s episode of The Bitcoin Vision, and he’s reunited with his crew who are equally excited about BSV’s latest big wins.

Read More
Dr. Craig Wright files formal libel claim against Bitcoin podcaster Peter McCormack

Business 18 April 2019

Dr. Craig Wright files formal libel claim against Bitcoin podcaster Peter McCormack

Dr. Craig Wright files formal libel claim against Bitcoin podcaster Peter McCormack, who publicly accused Wright of fraud over Satoshi Nakamoto identity.

Read More
Jack Liu responds to hasty BSV delistings, launches BSV-powered exchange & wallet

Business 18 April 2019

Jack Liu responds to hasty BSV delistings, launches BSV-powered exchange & wallet

Delisting Bitcoin SV from exchanges has inspired Jack Liu to start trading on his new BSV-powered exchange, FloatSV, earlier than expected.

Read More