The founder of Arise Bank was operating an unregistered financial enterprise in the state of Texas. He went on to dupe thousands of people worth in billions. He made several false claims about his token and financial enterprise. Despite not having a registered business, he managed to fool investors who bought 4 million worth of digital token from his company.
The business operator based in Texas has now been convicted by the law enforcement authorities. He was found guilty of several counts of intentional financial fraud and embezzlement. As per the investigators, the people who believed him were influenced by his lavish lifestyle and false representation of his business which he afforded with the help of money stolen from the investors.
Texas-based Investors Fell Victim to Fake Promises Made by AriseToken’s Inventor
Jared Rice Sr. is the man behind the scam token project called the AriseToken. He offered to allow people to get invested in all types of cryptocurrencies like Bitcoin, Ethereum, Litecoin, and some types of fiat currencies. The people who had a good head on their shoulders also fell for his trick because he managed to present his business as a legitimate entity.
He told his investors that their account is going to be protected under the insurance from the Federal Deposit Insurance Corporation or FDIC. He also managed to convince his victims that his bank is the first Decentralized banking enterprise in the world. According to federal investigators, both these claims are bogus and hold no basis in reality.
The most common reason that many people fall victim to these types of ordinary crypto scammers is that they refrain from conducting a business audit. When a person is investing in a business for the first time, they must ask for proof of the registration and authenticity from the business.
As per the investigators, the AriseBank did not have the legal approval to operate in Texas at all. Rice Sr. also tried to convince his victims that they will be able to acquire a VISA debit card to make use of the revenue generated from their crypto investments. However, his business did not have any affiliation with the digital payment giant at all. Investigators also revealed that he spends the money from his victims on maintaining an expensive lifestyle that the court has now ordered to fold and compensate the conned investors.