© 2021 88.9 KETR
ketr-org-header-image-2021.png
Public Radio for Northeast Texas
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
News

Feds Charge Digital Banker in Alleged Cryptocurrency Scheme

6KE5ZPr7_400x400.jpg

  The FBI says the CEO of a Fort Worth-based cyber-bank duped hundreds of investors out of more than $4 million in a cryptocurrency scheme. Federal officials arrested AriseBank CEO Jared Rice in connection with the allegations Wednesday night.

According to court documents, Rice is accused of touting AriseBank as the country’s “first decentralized banking platform,” based on a proprietary digital currency called AriseCoin. 

AriseBank, however, was never authorized to conduct banking in Texas, nor was it FDIC insured. It also did not have any sort of partnership with Visa, as was reportedly claimed, according to the FBI.

In a statement, the FBI said that even as Rice advertised AriseBank’s nonexistent benefits he spent investors’ money on hotels, food, clothing, a and personal legal services.

Rice was charged with three counts of securities fraud and three counts of wire fraud.