The CEO of Dallas-based AriseBank was arrested by the FBI on Wednesday for allegedly duping hundreds of investors out of more than $4 million in a splashy cryptocurrency scheme that promised federally insured accounts and brand-name credit cards.

Jared Rice Sr.'s arrest followed his indictment on three counts each of securities fraud and wire fraud, said Erin Nealy Cox, U.S. Attorney for the Northern District of Texas. The indictment was unsealed Wednesday.

Earlier this year, the Securities and Exchange Commission's Fort Worth regional office got an emergency court order to halt AriseBank's initial coin offering in which it claimed to have raised $600 million.

The indictment accuses Rice, 30, of lying to would-be investors by claiming that AriseBank could offer consumers FDIC-insured accounts and traditional banking services, including Visa-brand credit and debit cards, in addition to cryptocurrency services. He billed it as the world's "first decentralized banking platform" based on a proprietary digital currency called AriseCoin.

AriseBank had no such authorization to conduct banking in Texas, had no FDIC insurance and had no partnership with Visa, according to the indictment.

As Rice touted AriseBank's nonexistent benefits in press releases and online, government prosecutors say he converted investor funds for personal use, including hotels, food, clothing, Uber rides, a family law attorney and a guardian ad litem. They also allege he spent some of the money on his girlfriend.

Rice raised $4.25 million from investors who were using digital currencies like Bitcoin, Ethereum and Litecoin between June 2017 and January, the indictment said. Those investors thought they were buying into an as-yet-released AriseCoin.

"My office is committed to enforcing the rule of law in the cryptocurrency space," Nealy Cox, the U.S. attorney, said.

Rice faces up to 120 years in federal prison if convicted on all six counts.