AriseBank Cryptocurrency Creator Pleads Guilty to Scamming $4.2 Million From Investors

The inventor of cryptocurrency AriseCoin plead guilty Wednesday to defrauding investors out of more than $4 million in a scheme that promised "guaranteed, no-risk returns" of 10 to 20 percent, according to an announcement by U.S. Attorney for the Northern District of Texas Erin Nealy Cox.AriseBank CEO Jared Rice, Sr. plead guilty to one count of securities fraud admitting he lied to investors. Rice told investors they could receive FDIC-insured accounts and Visa-brand cards despite the fact that AriseBank had not been authorized to do business in the state of Texas, was not FDIC insured and had no partnership with Visa.Given the fairly recent emergence of cryptocurrency, Rice's guilty plea is one of the first of its kind in the U.S., according to the U.S. Attorney's office. Officials estimate Rice schemed hundreds of investors for $4,250,000 in AriseCoin.  Continue reading...