SEC shuts down AriseBank initial coin offering after it made fraudulent claims

sec arisebank initial coin offering ether cryptocurrency
Jaap Arriens/Getty Images
An initial coin offering for a cryptocurrency project known as AriseBank has been shut down by the Securities and Exchange Commission.

AriseBank is one component of a broad range of cryptocurrency services being offered by 29-year-old Jared Rice Jr. and 45-year-old Stanley Ford. The pair embarked upon the project in 2017, announcing an ICO toward the end of the year, according to Ars Technica.

The white paper detailing the cryptocurrency asserted that it would bring together the best aspects of capitalism and socialism. “It’s capitalism without the inequality and socialism without the lack of opportunity,” read the document.

There were claims that AriseBank had raised some $600 million in funding for the project, and even celebrity endorsements. However, in the wake of the SEC’s action against the company, it seems that the cryptocurrency has gone down in flames.

The SEC ruled that the AriseBank ICO is a securities offering in legal terms and as such, it should have been submitted to the commission ahead of time. It also said the company’s founders made at least two fraudulent claims while marketing the cryptocurrency.

AriseBank claimed to be collaborating with a financial technology company called Marqeta to facilitate payments using the Visa network. Marqeta has since denied any knowledge of such an agreement in a public statement.

The AriseBank team also professed to have acquired KFMC Bank Holding Company, an FDIC-insured bank, which would allow it to field banking products that other cryptocurrency firms could not. According to the SEC, KFMC is not insured by the Federal Deposit Insurance Corporation.

Now that cryptocurrency is beginning to hit the mainstream, government bodies are starting to pay closer attention. It remains to be seen what sort of effect this will have in the long term, but there are reasons to welcome this expanded oversight.

AriseBank seems to have been adopting some shady practices, and we’ve seen various other misdeeds pertaining to cryptocurrency in recent months — the wave of ‘malvertisements’ is one way people are abusing the technology. With the authorities taking more interest in its potential for illegal activity, we’ll perhaps see less activity of this kind.

Cars

Ford’s app-based ‘Chariot’ shuttle service is offering its final rides

Chariot, the app-based crowdsourced ride service owned by Ford, is shutting down in the coming weeks. Launched in 2014, the bus-like service has apparently been unable to deal with competition from the likes of Uber and Lyft.
Computing

Getting Windows 10 updated doesn't have to be so painful

Windows update not working? It's a more common problem than you might think. Fortunately, there are a few steps you can take to troubleshoot it and in this guide we'll break them down for you step by step.
Mobile

Apple’s iPad lineup is confusing. We break it all down for you

Trying to decide which iPad is right for you is a chore. What generation is the latest iPad? Which ones have been updated and which ones are collecting dust? Check out our iPad guide and we’ll break it down.
Gaming

PS4 vs. Switch: After weighing the pros and cons, which one comes out on top?

Nintendo Switch versus PlayStation 4: Which one has better overall value? We break down the pros and cons of each platform to tell you which of these consoles is truly worth the money.
Deals

From Air to Pro, here are the best MacBook deals for January 2019

If you’re in the market for a new Apple laptop, let us make your work a little easier: We hunted down the best up-to-date MacBook deals available online right now from various retailers.
Computing

Change your mouse cursor in Windows with these quick tips

The standard mouse cursor is boring, so change it! With this guide on how to change your mouse cursor in Windows, you can choose to use one of Microsoft's pre-installed cursors or download something a bit more extravagant.
Computing

Go hands-free in Windows 10 with speech-to-text support

Looking for the dictation, speech-to-text, and voice control options in Windows 10? Here's how to set up Speech Recognition in Windows 10 and use it to go hands-free in a variety of different tasks and applications within Windows.
Computing

Printing to PDF in Windows is easy, no matter which method you use

Microsoft's latest operating system makes it easier than ever to print to PDF in Windows, but there are alternative methods for doing so, even if you want to forgo Adobe Acrobat. Here's how.
Computing

Changing a PDF into an EPUB file is easier than you might think

If you like to read on a tablet or ebook reader, you'll find that ePUB files offer a number of advantages over PDFs. With this guide, we'll show you how to convert a PDF to EPUB in a few quick steps.
Computing

Need to combine a PDF? Here's how to get it done on both Windows and Mac

Sometimes juggling multiple files at once is more of a hassle than a convenience, especially when a single file would do. This quick guide will teach you how to combine PDF files on Windows, MacOS, or with online tools.
Computing

Don’t even bother with the rest. Here are the only laptop brands that matter

If you want to buy your next laptop based around a specific brand, it helps to know which the best brands of laptops are. This list will give you a good grounding in the most reliable, quality laptop manufacturers today.
Computing

Secure your Excel documents with a password by following these quick steps

Excel documents are used by people and businesses all over the world. Given how often they contain sensitive information, it makes sense to keep them from the wrong eyes. Thankfully, it's easy to secure them with a password.
Computing

Style up your MacBook Air with one of these great cases or sleeves

Whether you’re looking for added protection or a stylish flourish, you’re in the right place for the best MacBook Air cases. We have form-hugging cases, luxurious covers and padded sleeves priced from $10 to $130. Happy shopping!
Computing

Reluctant to give your email address away? Here's how to make a disposable one

Want to sign up for a service without the risk of flooding your inbox with copious amounts of spam and unwanted email? You might want to consider using disposable email addresses via one of these handy services.