Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

SEC Shuts down Reported ICO Scam

The United States Securities and Exchange Commission (SEC) recently shut down a reportedly fraudulent initial coin offering (ICO) that was targeting retail investors in order to fund that it called the first “decentralized bank” in the world.

According to the complaint the SEC filed in a federal district court on January 25, AriseBank used dissemination tactics including a celebrity endorsement and social media to raise an alleged $600 million of their goal of $1 billion over two months.

The complaint stated that AriseBank and its co-founders Stanley Ford and Jared Rice Sr. were allegedly offering and selling unregistered investments in “AriseCoin”, their own form of cryptocurrency, by positioning the company as a unique decentralized bank that offered a number of services and consumer-facing products that use more than 700 different types of virtual currencies. On top of this, the company failed to disclose the fact that multiple key executives had criminal backgrounds.

AriseBank, Rice Sr., and Ford’s assets were frozen following court approval, and a receiver was appointed over the company, including over its digital assets. The SEC stepped in to prevent the digital assets from being dissipated, and enabled the receiver to secure the various cryptocurrencies held by the company, including Dogecoin, Bitshares, BitUSD, Litecoin, and Bitcoin. The public sale began on December 26, 2017 and was set to finish on January 27, and distribution to the investors was set to occur on February 10. The SEC is currently seeking bars prohibiting Ford and Rice Sr. from serving as directors or officers for public companies that offer digital securities in the future, preliminary and permanent injunctions, and disgorgement of any ill-gotten gains plus penalties and interest.

If you were the victim on an investment scam, it is in your best interest to seek legal counsel. At Meyer Wilson, our investment fraud lawyers have represented nearly 1,000 clients from across the nation fight for and recover their lost funds. Give us a call at 888-390-6491 to speak with a member of our firm, or fill out our online form to set up a free case consultation today.

Related Posts:

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram