TexasBitcoin
Guilty pleaNorthern Texas

Cryptocurrency CEO Pleads Guilty to Securities Fraud in $4 Million Crypto Scheme

Mar 20, 2019 · Sourced to the U.S. Department of Justice

This case reached the guilty plea stage in the Department of Justice's public record. Everything below reflects only what the government itself announced, and links to the original release.

The inventor of cryptocurrency AriseCoin pleaded guilty today to duping investors out of more than $4 million. Jared Rice's case case is one of the first in which an individual has pleaded guilty to securities fraud involving a cryptocurrency in U.S. federal court.

District

Northern Texas

Announced

Mar 20, 2019

Status

Guilty plea

Defendants

  • Jared Rice, Sr. — age 30 · Northern District of Texas · pleaded guilty

Charges

  • Securities Fraud

    Max: 20 years in prisonJared Rice, Sr.· pleaded guilty

Financial actions

  • restitution: $4 million — Reimbursement to investors deceived in the AriseCoin cryptocurrency scheme

From the announcement

“I'm proud of the Northern District of Texas' innovative work enforcing the rule of law in the cryptocurrency space,”
— Erin Nealy Cox, U.S. Attorney for the Northern District of Texas, U.S. Department of Justice
“We will not tolerate flagrant deception of investors – virtual or otherwise.”
— Erin Nealy Cox, U.S. Attorney for the Northern District of Texas, U.S. Department of Justice

Investigating agencies

U.S. Attorney's Office for the Northern District of TexasSecurities and Exchange CommissionFederal Bureau of Investigation

Case details

Prosecuting office
Northern District of Texas
Assets
Bitcoin, Ethereum, Litecoin, AriseCoin
CryptocurrencyInvestor DeceptionMisappropriation Of FundsRegulatory EnforcementSecurities Fraud

Primary source

Every fact above is drawn from the Department of Justice's own announcement — a public-domain government record.

Read the original DOJ release →

This is a research and reference page compiled from public DOJ announcements, not legal advice. Details reflect the government's statements as of its release date and may not capture later developments such as appeals, dismissals, or overturned convictions. Defendants are presumed innocent unless and until proven guilty.