Lawsuit filed against Giga Watt ICO

Investors of the ICO, which attracted $ 22 million in cryptocurrencies, are unhappy with roadmap implementation delay
04 January 2018   1437

Giga Watt is a startup whose aim to launch a cryptocurrency mining facility. The company describes itself as “the world’s first full-service mining solution provider” and promises “turnkey mining services”. A group of investors have filed a lawsuit over project delays that they claim are costing them serious money. This is reported by the News Bitcoin Com.

The plaintiffs stated that ICO raised around $20 million in cryptocurrency last summer. That cryptocurrency is now worth five times as much, but investors haven't received nothing for it: no crypto, no Giga Watt tokens, and none of the mining equipment that was meant to be supplied. 

In a court filing, the plaintiffs state their “fear that they might never be issued their tokens or see their mining machines activated, and are losing valuable time and money as defendants indefinitely delay the further development of the Giga Watt Project”.

Giga Watt representatives have overtly and unmistakably stated to investors that between the time of the ICO and the date on which each investor would be issued his/her/its Giga Watt tokens, the value/price of each Giga Watt token was anticipated to increase significantly.
 

The Giga Watt filing in the U.S. District Court in Eastern Washington

Giga Watt is ran by Dave Carlson, who already has failed mining project. In 2014, his Megabigpower mining project fell apart after his supposed partners failed to purchase the equipment they had promised. 

CEO AriseBank Admitted to Fraud

Now Jared Rice faces up to 120 years in prison, however, confession may reduce this period to 20 years
22 March 2019   107

AriseBank CEO Jared Rice confessed to deceiving investors for $ 4.2 million in cryptocurrency. The plea agreement filed in the federal court of Dallas, Dallas News кузщкеы.

According to the document, Rice promised investors a "guaranteed return" of up to 20% of the invested funds, as well as opening bank accounts insured by the Federal Deposit Insurance Corporation and Visa-related debit and credit cards, although he did not have agreements with these companies.

The $ 4.2 million received from the ICO Rice spent on his girlfriend, lawyers, as well as on hotels, food and trips by Uber.

It is noteworthy that Jared Rice’s plea for cryptocurrency fraud was one of the first of its kind in the United States.

Now Rice faces up to 120 years in prison. However, confession may reduce this period to 20 years. Also, the organizer of the scheme will have to pay damages to deceived investors.

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

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