Following an investigation into the activities of a self proclaimed Cryptocurrency Bank AriseBank, the Texas authorities have ordered it to stop any services to the residents of the state.
30 January, AtoZForex – Texas state regulators have issued a cease-and-desist order to the so-called cryptocurrency bank AriseBank. The authorities have ordered it to stop any services to the residents of the state.
Texas Regulators Issue Cease-and-Desist Order to Cryptocurrency Bank AriseBank
In the official press release, the Texas Banking Commissioner Charles G. Cooper has stated that the business does not offer banking services. However, it has created a considerable confusion with its offerings. The release reads:
“The Cease & Desist Order was based on the Commissioner’s finding that AriseBank violated Texas Finance Code Chapter 31 by using the term “bank” in its name and marketing materials to imply that it is in the business of banking in this state”
The order requires AriseBank to cease and desist from implying that they engage in the business of banking in Texas. AriseBank is further required to clearly disclose that they do not offer their services to consumers in Texas.”
AriseBank is a “total scam”
Arise has appeared in the public when an alleged partnership with BitShares and a launch of an ICO were exposed as a scam. The project has described itself “the first ever decentralized banking platform.”
The Arise project was led by a person who also has attracted quite a negative publicity, Jared Rice. Mr. Rice has been known for defrauding business partners according to the reports available online. The ICO of Arise and the partnership has caused authorities to look closer into the activities of the firm. After inspecting the website of the entity, researchers have concluded that the business is a “total scam.”
The official press release from Texas regulators further states:
“Pursuant to Texas Finance Code § 35.207, AriseBank and the entities named in the Cease & Desist Order had the right to request a hearing by submitting a written request to the Banking Commissioner no later than the twentieth day after the date the Order was mailed. Because no such request was submitted, the Cease & Desist Order is effective January 26, 2018. It is final and non-appealable as of that date.”
As of now, the website of AriseBank is no longer operational.
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