IPFS News Link • Texas
State of Texas Orders 'Decentralized Bank' ICO Project to Cease Operations
• https://news.bitcoin.comThis week the Texas Department of Banking Commissioner, Charles G. Cooper, issued a cease and desist order to an alleged 'decentralized cryptocurrency-bank' called Arise Bank. The commissioner explains the startup unlawfully claims to be a banking institution and its operations must stop engaging with residents from the state of Texas.
Also read: US Financial Regulator Requests Crypto Trading Data From South Korea
Arise Banks Alleged Purchase of a Century Old FDIC Bank and Bitshares Connections
Back in December, some headlines started to spread on the web about a partnership between Arise Bank and a 100-year-old FDIC insured bank in the U.S. Arise Bank is an initial coin offering (ICO) that claims to have many strategic alliances. The news initially spread its wings when it was published on the popular online publication the Huffington Post, but the story has since been scrubbed. A copied version of the story still appears on the financial website Zerohedge.
Arise Bank claimed to be a "decentralized cryptocurrency bank" that offers a 100-page white paper, financial management services, debit cards, and an ICO. Further, Arise bank has associations with Bitshares community and the well-known developer Stan Larimer had also written about the project on Steemit. Unfortunately for Arise Bank, there's a lot of people who question the legitimacy of its services and state that lots of its so-called operations are non-existent.
Stan Larimer of Bitshares plugging Arise Bank's 'partnership deal' this past December. Bitshares value doubled after Arise Bank's announcement.
Texas Banking Commissioner: 'Arise Bank Must Stop Implying That They Engage in the Business of Banking in Texas'
Now the Texas Department of Banking wants Arise Bank to cease its operations immediately and details that the startup has violated the state's financial statutes.