Crypto Startup AriseBank to pay $2.3 million to settle fraud accusations

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Crypto Startup AriseBank to pay $2.3 million to settle fraud accusations

A crypto currency startup company, AriseBank, would have to pay $2.3 million to the US securities Exchange Commission or SEC for settling the accusations of deceiving investors through false claims like building a cryptocurrency bank.

The founders AriseBank, Stanley Ford and Jared Rice would have to pay civic penalties of $1,84,767 each and they are forever banned from serving officers of public companies. They would never be allowed to participate in offerings of digital securities as well, according to the SEC statement.

Over the Crypto ICO or initial coin offering, the AriseBank has not been the first one to be sued the US regulators. However, earlier this year, the AriseBank raised over $1 billion through its fraudulent initial coin offering (ICOs) for its crypto currency “AriseCoin”.

The ICO is considered one of the largest initial coin offerings ever for Cryptos. According to the SEC statement, they also have put an end to the AriseBank’s venture, alleging that the company had defrauded several investors saying that they had purchased an FDIC insured bank and they had also declined to disclose the criminal backgrounds of the chief executives.

According to the court order, all of AriseBank’s assets would be freeze and the assets tied to its fraudulent ICO would be paid back, while the cryptocurrencies have been languishing an extended leg of losses.