Why Has SEC Called AriseBank ICO A Scam & Stopped Its Operations
The cryptocurrency world is going through a bear cycle right now, with almost all the leading coins losing their value as well as market demand. Amid this chaos, many new companies are constantly coming up with their ICOs (initial coin offerings).
In one such instance, AriseBank, a self-proclaimed first-of-its-kind decentralized bank, announced ICO recently. However, the SEC took note of the company’s announcement and called it an outright scam that used false statements to get more people to invest in it. The SEC went on to get a court order to freeze all of AriseBank and its promoters’ assets to make sure it cannot collect any more money from investors.
What’s In It For You As An Investor?
The SEC believes that AriseBank had a goal of raising $1 billion in a period of two months. Out of this money, it had already raised more than $600 million through various public releases, social media promotions, and fake reviews by some leading business leaders.
The SEC further revealed that AriseBank never shared that some of its top executives, including co-founder and president, had criminal backgrounds. Something that investors have the right to be aware of.
It’s one of the many shady financial investment schemes running in the market at present. As an investor, you should be careful about such schemes, and if your broker or any other company that called itself a legitimate entity tricked you into investing in a scheme, then you must talk to a good attorney as soon as possible.
If you act on time, there are solid chances that you can recover your money in full. But if you delay and let things slip away from your hands, then you may only be left with regrets and guilt of not doing the right thing at the right time.
Keep it in mind just in case you decide to put your money in someone else’s hands in the future and don’t want him to run away with it.