Texas regulators have issued an unconditional cease and desist order to the self-described ‘cryptocurrency bank’ AriseBank on Friday, Jan. 26, ordering it to halt any services to the state’s residents.
In a formal press release Friday, the Texas Banking Commissioner Charles G. Cooper implied the business, which has generated considerable controversy with its alleged offerings, does not in fact offer “banking services.”
The release explains:
“The Cease & Desist Order was based on the Commissioner’s finding that AriseBank violated Texas Finance Code Chapter 31 by using the term “bank” in its name and marketing materials to imply that it is in the business of banking in this state”
“The order requires AriseBank to cease and desist from implying that they engage in the business of banking in Texas. AriseBank is further required to clearly disclose that they do not offer their services to consumers in Texas,” it continues.
Arise came to prominence late last year when an alleged partnership with BitShares and a launch of an ICO were decried as a scam in cryptocurrency circles.
Describing itself as “the first ever decentralized banking platform,” the project was led by Jared Rice, a figure who himself has attracted negative publicity for defrauding business partners according to complaints portal Ripoff Report.
Earlier, Cointelegraph reported that the state of Texas had similarly ordered the now-defunct platform Bitconnect to cease and desist in the selling of unlicensed securities.
According to the Texas order, Arise must now comply with the terms and adopt a 100% hands-off approach to Texas consumers by January 26, after failing to reply to the original order issued January 5.
Cointelegraph was unable to verify the situation with AriseBank due to its website no longer functioning as of press time Monday.