In recent years, the figures cryptosphere put a lot of effort to ensure that rich institutional investors realized cryptocurrencies are not a Scam. However, another blow to the reputation of cryptocurrency has caused a scandal in connection with the former head AriseBank Jared rice November 28 he was arrested by the FBI after the court has charged him with fraud in securities and money transfers.

The company AriseBank not the first time comes into the view of militiamen. Previously, the SEC froze ICO AriseBank after the company raised $600 million In January 2018 in the advertising of the project involved a famous boxer Evander Holyfield, for which the company promised to pay him 2.5 million tokens Arisecoin (ICO token was sold for a dollar extra).

In 2017 the Commission on securities and exchange Commission has opposed the participation of celebrities in advertising campaigns projects, ICO.

AriseCoin published a whitepaper on a hundred pages, where it was argued that “Arisecoin is a new digital currency that will create global economic system, so long demanded by humanity” and stated that “this new economic system combines capitalism and socialism, except in this case, their flaws”, and also contained the same pathetic Declaration.

Earlier this year, the SEC banned the holding company ICO. According to the regulator, the information that is reported about the project, was false. In particular, as it turned out, was not AriseBank agreements with banks in Texas, and the company cooperated with Visa, although assured investors otherwise. Rice, according to law enforcement officers, spent the funds collected to pay for the hotels, buy food, clothing and gifts to mistresses.

Oddly enough, in an interview with Forbes magazine earlier this year, rice admitted that he felt the end approaching, “I told absolutely everyone who worked on this project for us will come. I didn’t know it would happen so soon, but understood that a catastrophe is imminent”.

On set of charges, rice faces 120 years in prison.