Man behind AriseCoin gets five years for stealing $4 million worth of cryptos 

Jared Rice Sr., the founder of AriseBank, has been sentenced to serve five years behind bars for stealing $4.2 million worth of cryptocurrencies. 

The 33-year-old Rice Sr. was also ordered to restore exactly $4,250,000 cryptos he stole from investors through his fraudulent schemes. 

Rice Sr. has admitted that his AriseCoin is nothing but a crypto scheme that he used to the fullest to lure a large number of investors. 

At the height of his fraudulent scheme, he claimed that AriseBank was the “world’s first” decentralized banking platform. On top of this lie, he also claimed that AriseCoin is an asset that can offer investors Federal Deposit Insurance Corporation (FDIC)-insured accounts. 

Lies revealed

The authorities later discovered that AriseBank didn’t possess any license to operate in the state of Texas. It was also found it is not FDIC-insured and not connected with Visa in any other way as it claims. 

Through Rice Sr.’s deception, he was able to lure hundreds of investors who have invested around $44.2 million in AriseCoin, acquiring top cryptos such as BTC, ETH, LTC, including fiat currencies. 

The authorities discovered that Rice Sr. had spent investors’ funds in expensive hotels, food, transportation, a family law attorney, and even an advertisement for a guardian. 

Even with his arrest, he won’t be able to hoard all the funds he stole as the Texas high court ordered him to restore all the money he got from the victims. 

Similar case

A recent case has also happened in Texas which is similar to AriseCoin. In this case, a so-called “Doctor Bitcoin’ was involved, whose real name is Mark Hoppins. Hoppins was found guilty of conducting an illegal cash-to-crypto operation. 

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/man-behind-arisecoin-gets-five-years-for-stealing-4-million-worth-of-cryptos/