The U.S. Securities and Exchange Commission (SEC), which holds primary responsibility for enforcing federal securities laws and regulating the nation’s stock exchanges, obtained a court order halting an allegedly fraudulent initial coin offering (ICO), which targeted retail investors to fund what was claimed to be the world’s first “decentralized bank.”
According to the SEC’s complaint filed in federal district court in Dallas on January 25 and unsealed as of late yesterday, Dallas-based AriseBank used social media, a celebrity endorsement, and other wide dissemination tactics in order to raise what it claims to be $600 million of its $1 billion goal. This in a matter of two months.
AriseCoin’s public sale commenced around December 26, 2017, and was originally scheduled to conclude on January 27, 2018, with distribution to investors on February 10.
Stepping Up Action
The move to halt this ICO follows announcements in December the SEC to halt an ICO by Munchee Inc., a California-based company selling digital tokens to investors to raise capital for its blockchain-based food review service (before any tokens were delivered and refund investors).