In another high-profile arrest related to ICOs the CEO of a would-be cryptocurrency bank has been arrested on the charges of embezzlement. Now his fate hangs in the hands of FBI.
The world of cryptocurrencies is a jungle. And just like any jungle, there’re a lot of wild animals with evil intentions here. We’ve seen countless cases of scams and frauds in this world, and now one more such case is coming to light in United States where a 30 years old CEO of AriseBank has been arrested on the charges of embezzlement. He was a target of Civil proceedings and SEC injunction from quite some time, and according to a press release published by US Department of Justice (DoJ) he was arrested this week.
AriseBank was intended to be a bank for cryptocurrencies, and company’s CEO Jared Rice Senior had touted its non-existent benefits at lengths. However, instead of using the funds raised in an ICO for developing the bank he used those funds for his personal benefits. According to DoJ’s press release:
“Even as he 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.”
Public records of law enforcement authorities suggest that this is not a a first indictment for Jared Rice. He has previously been indicted for tampering with government records in Texas when he forged the seal of Secretary of State. In the same case he was also charged with stealing of investor funds. Needless to say that when he started out on AriseBank he might certainly have been on the radar of FBI.
According to allegations against him, Rice also used some proceeds of the firm to hire a family attorney, and to fund a guardian ad litem. These things are related to his personal problems, as has has also been held on a $15,000 bond for assaulting a family member. That domestic violence charge seems to have been made against him after his earlier fraud in which he was charged of tampering with government records.
Interestingly, it seems that among all the things that he did with the money he didn’t bother about clearing his past public records of crime. The case also brings to mind a more serious case of scamming done by Josh Garza, who was a crypto mining executive. Garza was sentenced to prison some time ago. Let’s see what happens with this man now!