SEC halts AriseBank's $1B initial coin offering, alleging fraud

Currencies FOXBusiness

Tyler Winklevoss: Bitcoin has been volatile for a long time

Gemini CEO and co-founders Tyler and Cameron Winklevoss discuss the first full day of Bitcoin futures trading.

WASHINGTON, Jan 30 (Reuters) - The U.S. Securities and Exchange Commission said Tuesday in a statement that it has halted what it alleged was a fraudulent initial coin offering by Dallas-based AriseBank to raise $1 billion for its "AriseCoin" cryptocurrency.

Continue Reading Below

The SEC said it had obtained a court order to halt AriseBank's efforts to target investors\ and alleged that the entity had "falsely stated that it purchased an FDIC-insured bank" and had "allegedly omitted to disclose the criminal background of key executives."Representatives for AriseBank could not be immediately reached for comment.

(Reporting by Susan Heavey Editing by Chizu Nomiyama)

What do you think?

Click the button below to comment on this article.