Rice, 33, was also the CEO of AriseBank, described as the world’s “first decentralized banking platform.”
Although Rice told investors that accounts at AriseBank were FDIC-insured and that the bank would issue Visa-brand credit cards, AriseBank was not authorized to conduct banking in Texas, was not FDIC insured, and was not partnered with Visa.
Instead of investing the money in AriseBank, the Securities and Exchange Commission (SEC) says Rice spent investor funds on personal items, including hotels, food, transportation and attorney fees.
Rice previously pled guilty to state felony charges related to a previous “internet-related business scheme,” which he did not disclose to investors.
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