FBI has arrested Jared Rice, the CEO of AriseBank, a cryptocurrency firm. The charges on him include defrauding hundreds of investors for over $4 million. The US Attorney’s Office for the Northern District of Texas released the news which was also out on the US Department of Justice’s website.

According to the court documents, Rice had made false announcements about his Initial Coin Offering (ICO). He claimed that ICOs for AriseCoin, the proprietary digital token of AriseBank, had raised $600 million within weeks.

Furthermore, Rice urged the investors to buy the token using various cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and fiat currency. Also, he falsely claimed that the bank could offer FDIC-insured accounts and other traditional banking services along with cryptocurrency services.