The U.S. Attorney’s Office of the Northern District of Texas has indicted Jared Rice, CEO of AriseBank, a crypto-banking platform. According to the U.S. Attorney’s Office, Rice duped hundreds of investors out of more than $4M and allegedly lied to investors, claiming that AriseBank could offer consumers FDIC-insurer accounts and traditional banking services. In actuality, AriseBank has not been authorized to conduct banking in Texas, nor was it FDIC insured.
The U.S. Attorney’s Office also stated that as Rice "touted AriseBank’s nonexistent benefits in press releases and online, Mr. Rice quietly converted investor funds for his own personal use, spending the money on hotels, food, clothing, a family law attorney, and even a guardian ad litem." If convicted, Rice faces up to 120 years in federal prison. (Source: Department of Justice)