The US Securities and Exchange Commission (SEC) has halted a fast-moving initial coin offering (ICO) that was seeking to raise up to $1 billion from thousands of investors to develop “the world’s first decentralized cryptocurrency bank”
Dallas-based AriseBank was ordered to stop its ICO and refund investor proceeds after the SEC released a report stating that “it used social media, a celebrity endorsement, and other wide dissemination tactics to raise what it claims to be $600 million.
The US top regulator warned investors against throwing money into the crowdsale because the company intended to launch a cryptocurrency-based investment scheme without even attempting to follow US securities laws.
The SEC obtained an emergency asset freeze against AriseBank and filed charges against its co-founders Jared Rice and Stanley Ford, alleging that they sold securities claiming investments in AriseBank would bring “a first-of-its-kind decentralized bank offering a variety of consumer-facing banking products and services using more than 700 different virtual currencies.”
The SEC alleges that AriseBank falsely claimed that it had signed an agreement to buy the Federal Deposit Insurance Corporation (FDIC) insured bank. If went well, the acquisition would give the crypto startup a full traditional banking license.
Source: Finance Magnates
Trader Bozhidar Arabadzhiev
Original post: SEC Halts $1 Billion ICO of AriseBank, Discloses Criminal Background of Executives
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