Blockchain startup AriseBank’s CEO is facing up to 120 years in prison for misleading investors in a crypto scam. According to The Next Web, Jared Rice defrauded investors out of $4 million after he claimed the company would become the “first decentralized banking platform” — offering FDIC-insured accounts and banking services, as well as Visa-branded credit cards and other cryptocurrency services. In reality, he was spending his investors’ bitcoin on hotels and clothes. He also claimed the company’s initial coin offering (ICO) had raised $600 million (it only raised $4 million), and he failed to reveal that he pleaded guilty to state felony charges in connection with another internet business. The U.S. Securities and Exchange Commission (SEC) shut AriseBank down in March.
In other news, people can start mining crypto in the comfort of their own home without having to invest in a huge machine. According to reports, the Coinmine One (which costs $799), created by Farbood Nivi, allows users to pick a cryptocurrency to mine, then run it on the built-in CPU and GPU. The device comes equipped with an Intel Celeron Processor J Series processor and an AMD Radeon RX570 graphics card, in addition to a 1 TB drive to hold the blockchains needed for currency management.
Another new product is also ready to launch: Blockchain phone Finney is expected to start shipping in late December. According to CoinDesk, Sirin Labs vowed at an event in Barcelona to take the user experience of decentralized apps (dapps) to the next level with its new product. The company has teamed up with Foxconn to produce the phones, which will sell for a retail price of $999. Holders of the sirin (SRN) token can pre-order the device now, with additional payment channels expected to go live soon.
BitTorrent owner TRON has vowed to spend $100 million in blockchain games over the next three years. The company wants to boost innovation in blockchain and cryptocurrency through mobile gaming. “Our mission is to bring the blockchain to mass market,” said Roy Liu, head of business development at TRON, according to Venture Beat. “Games led the way to make smartphones and virtual reality more accessible. Now, it’s happening with blockchain.” Launched one year ago, TRON’s TRX currency is one of the 10 most valuable cryptos, with a valuation of $994 million.