AriseBank Failed Initial Coin Offering Investigation
USMA Law Group is investigating potential securities claims on behalf of pre-purchasers of the AriseCoin token in connection with the AriseBank attempted Initial Coin Offering.
USMA Law Group is available to discuss litigation options for investors in the AriseBank ICO. If you made an investment in AriseBank leading up to its planned ICO, please complete the firm’s Contact Form below. You may also contact attorney David P. Abel at 202-274-0237 or via email at email@example.com.
AriseBank began raising money through an alleged unregistered securities offering of AriseCoin around November 2017. AriseBank claimed that it raised more than $600 million, with a goal of $1 billion. The ICO was scheduled to conclude on January 27, 2018, with AriseCoin to be distributed to investors on February 10, 2018.
On January 25, 2017, the SEC halted the allegedly fraudulent ICO by securing a court-ordered emergency asset freeze over AriseBank, and its co-founders, which included appointing a receiver over their assets.
The ICO was allegedly an illegal offering of securities. AriseBank may have also made false statements about the ability to offer customers FDIC-insured accounts and transactions and its association with a payments processing platform through which AriseBank claims to offer an AriseBank-branded Visa card. In addition, AriseBank allegedly failed to disclose the criminal background of key executives.
Following is a summary timeline of certain events relevant to AriseBank investigation. The complaint and docket of SEC v. AriseBank et al., No. 18-cv-0186 (N.D. Tex. Jan. 5, 2018), is also recommended for useful background information. Additionally, the AriseBank Receiver website may be of assistance to investors.
Please contact USMA Law Group if you have suffered losses from this investment. There is no obligation or cost.
Arise Bank Timeline
- 2015 – Jared Rice Sr., AriseBank’s CEO, is charged with felony theft and tampering with government records. He recently pleaded guilty and remains on probation.
- October 2017 – AriseBnk issues a whitepaper discussing the AriseCoin ICO.
- November 2017 – AriseBank begins its initial private sale through an alleged illegal securities offering of AriseCoin. The Company runs a presale of the ICO through December 26, 2017, and then launches a public sale, which was set to last until January 27, 2018.
- December 2017 – AriseBank announces it is acquiring a 100-year old FDIC insured bank.
- January 5, 2018 – Texas Banking Commissioner Charles G. Cooper issues a Cease & Desist Order relating to AriseBank.
- January 25-26, 2018
- The SEC files a complaint against Defendants AriseBank, Jared Rice, Sr., and Stanley Ford, along with an application for the appointment of a receiver.
- The Court enters a Receivership Order appointing Mark Rasmussen as Receiver for AriseBank and its affiliates. The Court also enters an order ex parte granting a temporary restraining order, an asset freeze and other relief, and set a hearing on the SEC’s motion for a preliminary injunction (TRO).Jared Rice and AriseBank are served with the summons, complaint, TRO, and Receivership Order.
- The Receiver reports being able to collect and search computer equipment belonging to the Receivership Entities and interview Mr. Rice and three of his associates at a temporary residence in Wills Point, Texas, following the FBI’s execution of a search warrant at that location. Through that search and those interviews, the Receiver identifies and takes control of certain cryptocurrency assets.
- The Texas Department of Banking Commissioner finalizes its Cease & Desist Order to AriseBank and certain of its operators. The Texas regulator orders AriseBank to halt any services to the state’s residents. Texas Department of Banking states (i) AriseBank illegally uses the term “bank” in a name, which has a special application; (ii) the department has never received an application requesting to use the name AriseBank; and (iii) regulators tried to visit AriseBank’s Dallas offices AriseBank lists on its website, but say it does not exist.
- February 5, 2018 – The Court grants a motion filed by the SEC for an order extending the TRO until February 22, 2018.
- February 16, 2018 – The Court grants a second motion filed by the SEC for an order extending the TRO until March 13, 2018.
- March 9, 2018 – The Court reschedules the TRO hearing from March 13, 2018, to March 19, 2018.
- March 12, 2018 – The Court once more extends the TRO.
Information subject to change without notice
Prior results do not guarantee future results