CEO AriseBank Jared rice confessed to defrauding investors of $4.2 million in the cryptocurrency. The agreement on the plea filed in Federal court in Dallas, writes the Dallas News.

According to the document, rice promised investors “guaranteed” up to 20% of invested funds, as well as opening Bank accounts, insured by Federal Corporation of insurance of deposits, and are associated with Visa debit and credit cards, but did not have agreements with these companies.

Obtained in the course of ICO $4.2 million rice spent at his girlfriend and lawyers, as well as on hotels, food and travel in Uber.

It is noteworthy that the statement of Jared rice’s plea of fraud in the cryptocurrency has become one of the first of its kind in the United States.

Now, rice faces up to 120 years in prison. However, a confession may reduce this period to 20 years. Also the organizer of the scheme will have to compensate defrauded investors.

The final verdict on the case will be decided July 11.

Recall, Jared rice was arrested in November 2018 on charges of fraud unregistered securities and fraud using electronic means of communication. In December, the Commission on securities and exchange Commission (SEC) ordered him and the co-founder AriseBank Stanley Ford to pay about $2.7 million as part of the settlement charges.