The Securities and Exchange Commission (SEC) through the court has secured the suspension of the initial coin placement (ICO) of the AriseBank project. Accusing of fraud, the Commission through the court arrested the company's accounts from Dallas, Texas, including digital assets in Bitcoins, Litecoin, Bitshares, Dogecoin and BitUSD, according to the SEC website.
The founders of AriseBank Jared Rice and Stanley Ford advertised the project as the first decentralized bank with a wide range of services supporting more than 700 cryptocurrencies. They also claimed that they developed an application for automatic algorithmic trading with cryptocurrencies.
At the time of filing a complaint with the SEC, on January 25, the project attracted $ 600 million of investment and intended to raise this amount to $ 1 billion.
It is noteworthy that one of the top persons who advertised the project was the former boxer Evander Holyfield.
The main SEC charges against AriseBank are reduced to frauds with unregistered securities, misleading users about cooperation with the Federal Deposit Insurance Corporation and the possibility of obtaining a VISA card for convenient settlement in cryptocurrencies. In addition, according to the SEC, the organizers of AriseBank have hidden the criminal past of the project leaders.
Investors, who suffered from AriseBank's actions, the Commission proposed to apply to the financial controller for drafting the complaint.
In turn, representatives of AriseBank claim that they are under pressure from the SEC and intend to defend their interests in court.