The US Securities and Exchanges Commission (SEC) has suspended an Initial Coin Offerig that is allegedly fraudulent. It is an ICO of the AriseBank from the US state of Texas. Investors who have probably been victims of fraud should contact the SEC.

The US Securities and Exchange Commission (SEC) stopped the ICO from being the self-proclaimed “first decentralized bank in the world”. The reason given is that AriseBank and its co-founders Jared Rice Sr. and Stanley Ford have offered and sold unregistered investments. According to the AriseBank have their ICO on social media channels, through public support by prominent personalities and other distribution options have promoted and so have taken a total of about 600 million US dollars of the targeted 1 billion already in a period of two months.

As part of their cryptocurrency token sales AriseCoin, Rice and Ford have made AriseBank the first decentralized bank of their kind to offer their customers a range of banking products using over 700 different currencies. For this an algorithmic trading platform was developed, which carries out automated trades in different crypto currencies.

The SEC also notes that AriseBank has falsely claimed to have bought a deposit-insured bank (FDIC insured), which allows it to insure customers’ accounts. In addition, customers were promised a VISA card issued by Arise to spend each of the 700 cryptocurrencies.

The court in charge accepted the requirements of the SEC and set about freezing the affairs of AriseBank and Jared Rice Sr. and Stanley Ford. Thus, the SEC intervened to protect the digital currencies before they could be embezzled. In addition, the SEC asked potential victims of the fraud to contact them and to coordinate further action.