SEC, The U.S. financial watchdog, has charged the Texas-based AriseBank for alleged fraud and issuing unregistered securities during its recent initial coin offering (ICO).
Around November last year, the company claimed to have raised more than 1 billion USD as part of their own AriseCoin token launch. AriseBank made the headlines when the former professional boxer Evander Holyfield endorsed the ICO.
SEC alleges that because the US residents were not excluded from the token issuance, it falls under the scope of securities. Having failed to register AriseCoin with the SEC, the firm has violated securities guidelines – alleged the regulator.