The Securities and Exchange Commission (SEC) has settled with the executive management involved with the AriseBank initial coin offering (ICO). The allegedly fraudulent ICO came to a screeching halt with the SEC obtained a court order halting the AriseBank ICO that targeted retail investors to invest in the “world’s first decentralized bank.”
Two former executives of AriseBank, former CEO Jared Rice Sr. and then COO Stanley Ford, have been ordered to pay $2,259,543.83, representing profits gained as a result of the conduct described in the Complaint, plus prejudgment interest in the amount of $68,423.32, and individually liable for a civil penalty in the amount of $184,767.00 each.
Additionally, Rice and Ford are prohibited from serving as officers or directors of public companies or participating in future offerings of digital securities.
Rice and Ford agreed to the settlements without admitting or denying the allegations in the SEC’s complaint
Shamoil T. Shipchandler, Director of the SEC’s Fort Worth Regional Office, said Rice and Ford lied to AriseBank’s investors by pitching its “decentralized bank” and crypto services.
“The officer-and-director bar and digital securities offering bar will prevent Rice and Ford from engaging in another cryptoasset-based fraud,” said Shipchandler.
At the time of the offering, it was claimed that the ICO had raised $600 million on a goal of $1 billion.
A poster child for ICO scams, AriseBank had boxing champ Evander Holyfield officially endorse the AriseBank ICO.
AriseBank may not be out of the woods yet. On Nov. 28, 2018, the U.S. Attorney’s Office for the Northern District of Texas announced parallel criminal charges against Rice.
Boxing legend and Hall of Famer Evander Holyfield has officially endorsed @AriseBank @BitShares Join the biggest fight in history. #arisebank $BTS #BTS pic.twitter.com/MFNCpZ5OJf
— Evander Holyfield (@holyfield) January 5, 2018