The regulators in Texas have issued an order to AriseBank, the self described Cryptocurrency bank, to stop all of its services to the residents of Texas and leave the state immediately. The order was issued on January 26, 2018 to the scam bank.
According to Mr. Charles G. Cooper, the banking commissioner in Texas, Arisebank, which has run into controversy for the alleged offerings, is not offering any banking services.
According to a press release on Friday, the regulator has issued the cease and desist order on finding that AriseBank is not conducting any banking services in the state and used the term ‘bank’ in its name violating the Finance Code 31 of Texas.
The order has mandated AriseBank to disclose clearly that it is not offering any banking services to the consumers in the state. It also further mandates that the AriseBank is not offering its services to the customers in the state.
Arise was in the news last year for its alliance with BitShares and unveiling of an ICO platform that was declared as a scam in the cryptocurrency circles. Mr. Jared Rice, whose image was tarnished for defrauding the business partners, led the project that was described as the decentralized banking platform for the first time.
The partnership along with the launch of ICO sparked a debate and attracted the detailed review of its website activities. The researchers finally concluded that business of AriseBank was completely scamming.
The Arisebank has failed to submit a reply to the order issued on January 5, 2018. The company must now comply 100% with the terms of the order and stop offering services to the customers in Texas by January 26, 2018. However, the latest status of compliance with an order is not available due to non operation of the website of AriseBank.
According to Cointelegraph, the Texas regulator has issued a cease and desist order to BitConnect, a defunct platform, previously. The company was asked to stop the sales of unlicensed securities immediately. The financial regulators in Texas are now more vigilant and scrutinizing the activities of cryptocurrency.