In Brief:
- Jared Rice, Sr., the inventor of AriseCoin, was sentenced to five years in federal prison on Wednesday.
- He, reportedly, scammed investors out of $4.25 million.
AriseCoin inventor, Jared Rice Sr., reportedly scammed hundreds of investors out of $4.25 million. U.S. District Judge Ed Kinkeade sentenced him to five years in federal prison.
Rice was also the CEO of AriseBank, which is apparently the world’s “first decentralized banking platform.” The jury Department of Justice ordered the CEO to pay the equivalent of the funds to compensate the enterprise.
According to court papers, he accepted that he lied to investors. He claimed that the AriseBank platform could provide consumers with FDIC-insured accounts and traditional banking services, such as Visa-brand credit cards.
However, AriseBank did not have the authorization to provide banking services in Texas. It also did not have any partnership with Visa nor was it FDIC-insured.
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The attorneys demonstrated that Rice spent the money for personal use. Instead of investing the money in AriseBank, he spent funds on lawyers, hotels, and travel.
According to the document, Rice did not also disclose to investors his previous felony charges on an “internet-related business scheme”.
