Crypto Bank’s Executive Awarded 5 Years Sentence With Fine of US$ 4 Million

Cryptocurrency News

A District Court in the US brought down wrath upon Arisebank’s CEO by awarding him five years of sentence along with a fine of US$ 4,258,073 because he was found guilty of crypto fraud. He accepted his guilt before the Court by admitting that he had defrauded crypto investors and used their funds for his personal benefit and gains.

An official statement has been released by the Department of Justice in the US (DOJ) in which DOJ has revealed awarding of sentence to a crypto fraudster. The statement noted that Jared Rice Sr. had been serving the so-called self-proclaimed first crypto bank namely Arisebank. The statement revealed that the CEO was taken to trial by a District Court in the US. On the final day of the hearing, the District Court awarded him 5 years sentence as punishment for his crypto crime. The CEO was further fined by the Court to pay an amount of US$ 4,258,073 in the form of “compensation”.

Prerak Shah, who is currently a substitute of the US Attorney’s Office in Texas’s Northern District, also confirmed the Court’s ruling. He informed that the founder and man in charge of Arisecon has been finally sentenced to serve 5 years in prison. Shah also told that Rice also admitted his guilt before the Court of defrauding innocent people by looting their money. Along with serving 5 years in state prison, Jared would need to pay an amount of US$ 4 Million as compensation, said Shah.

Rice, who is in his very young age of 33, had developed a company that he claimed to be the first “crypto bank”. He was able to convince people to come to the company and utilize it as typical bank. He even offered Initial Coin Offering (ICO) at Arisecoin in 2018. However, the Securities & Exchange Commission of the US (SEC) grew concerns over his and Arisecoin’s activities. SEC then instituted a case against Arisecoin and Rice alleging that the so-called crypto bank was involved in activities of offering “securities”.

The case was Arisecoin and its CEO was heard by a District Court in the Texas state. During the course of trial, Rice made an admission that he was involved in fraudulent activities and has offered securities. However, he denied rest of the allegations leveled against him and his company by SEC. But for the Court, his admission of offering unregistered securities was good enough to book him as “criminal”.

The Court passed its ruling in the matter on 25th August, 2021. In the judgment, Court decided that Rice and his company were crypto fraudsters who looted public money by deceiving investors. As a punishment for his crime, the Court ordered him to serve 5 years in state prison. In addition, the Court demanded that he should immediately pay a fine of US$ 4 Million to refund the claimants.

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