Verified on Po.et Created with Sketch. Verified on Po.et

SEC Halts AriseBank ICO, Calling It “an Outright Scam”


         SEC Halts AriseBank ICO, Calling It “an Outright Scam”

In a statement from the Securities Exchange Commission (SEC), an emergency relief action was filed to shut down AriseBank, which it described as “an outright scam.”

In a growing list of enforcement actions by the SEC, the complaint against AriseBank stated that the Dallas-based company had used deceptive tactics to raise what they claim was $600 million of its $1 billion goal in just two months. Co-founders Jared Rice Sr. and Stanley Ford are being charged with alleged fraud and issuing unregistered securities during its ICO.

On January 18, 2018, AriseBank had announced the purchase of two FDIC insured banks, KFMC Bank Holding Company and TPBG, neither of which exist. AriseBank also offered customers an AriseBank-branded VISA card to spend any of the 700-plus cryptocurrencies using their purported algorithmic trading application that automatically trades in various cryptocurrencies, in addition to allegedly failing to disclose the criminal background of key executives.

Co-director of the SEC’s Enforcement Division, Stephanie Avakian, said, “We allege that AriseBank and its principals sought to raise hundreds of millions from investors by misrepresenting the company as a first-of-its-kind decentralized bank offering its own cryptocurrency to be used for a broad range of customer products and services.”

Avakian continued, “We sought emergency relief to prevent investors from being victimized by what we allege to be an outright scam.”

AriseBank had recently announced it was teaming up with boxing legend Evander Holyfield to help raise money for disaster preparedness. Now, however, a cease-and-desist order has been executed, their office and executives homes have been raided, their assets have been seized, their website is down and their ICO has been stopped.

SEC co-director, Steven Peikin, said, “This is the first time the Commission has sought the appointment of a receiver in connection with an ICO fraud. We will use all of our tools and remedies to protect investors from those who engage in fraudulent conduct in the emerging digital securities marketplace.”


Bitstamp Receives New York BitLicense

Bitstamp, one of the largest crypto exchange platforms in Europe, has been become the 19th firm approved to offer crypto-based services in the world's financial center.

Jimmy Aki

China’s Proposed Mining Ban Could Be Detrimental to Bitmain

China's state planning agency has added cryptocurrency mining to a list of industries it would like to eliminate. This may have dire consequences for the country's mining hardware giant Bitmain.

Jimmy Aki

Bitpanda Receives Payment License from the European Union

Viennese cryptocurrency brokerage platform Bitpanda has received a license to operate as a payment service provider in Austria.

Jimmy Aki

In Plain English: SEC Publishes Guidance on Tokens as Securities

The U.S. Securities and Exchange Commission (SEC) has published an investment contract framework for digital assets, which is intended to give crypto companies more specific guidance as to whether a cryptocurrency is a security.

Colin Harper