AriseBank in a $4.2 million ICO scam – CEO pleads guilty

scam company

AriseBank is a cryptocurrency bank that found itself amidst a $4.2 million ICO scam. The former CEO of the institution pleaded guilty to deceiving investors of around $4.2 million. The information comes from the US news agency Dallas News.

Jared Rice Sr. is essentially the founder of AriseBank. What the founder admitted in federal court was that by selling the AriseCoins to investors, he was selling them the “promise” that they will receive Visa credit cards and even real bank accounts insured by the Federal Deposit Insurance Corporation or the FDIC. All of these “perks” came with different cryptocurrency services, of course.

According to Erin Nearly Fox, the attorney for the Northern District of Texas, Mr. Rice entered a guilty plea for one count of securities fraud.

This is not the first time, Rice and AriseBank are facing “ICO issues”. Last year, the founder and the COO of the bank, Stanley Ford, faced US federal court and were ordered to pay close to $2.7 million, as they were involved in shady ICOs offered by AriseBank.

Currently, the cryptocurrency bank is in possession of around $4.2 million. The CEO may now have to repay this amount to investors in full, depending on the outcome of the verdict. As of now, the term that Rice may be serving in jail is around 20 years, while he initially faced a staggering 120-year term.

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