SEC stops AriseBank ICO
image credit: drpatrickkeelan.com
The U.S. Securities and Exchange Commission announced Tuesday it has obtained a court order to halt and freeze the assets of what is likely the largest initial coin offering ever.
The complaint was filed in Dallas, Texas, on Thursday and unsealed late Monday. The SEC said Dallas-based AriseBank "used social media, a celebrity endorsement, and other wide dissemination tactics to raise what it claims to be $600 million of its $1 billion goal in just two months."
The court approved an emergency asset freeze over AriseBank and its two co-founders. The SEC said that for the first time in connection to an ICO fraud, it has appointed a third-party custodian, or receiver, to secure the firm's cryptocurrency holdings. Those assets include bitcoin, litecoin, bitshares, dogecoin and bitUSD.
"The ICO is an illegal offering of securities because there is no registration filed or in effect with the SEC, nor is there an applicable exemption from registration," the complaint said.
Read more here: https://www.cnbc.com/2018/01/30/sec-halts-one-of-the-largest-icos-ever.html
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