Texas regulators issued an unconditional cease and desist order to the crypto bank AriseBank, Friday, January 26th. In an official press release on Friday, the Texas auditor, Charles G. Cooper, hinted that the company, which has sparked considerable controversy with its so-called offers, does not actually offer banking services. "The release explained:
" The order to cease and abstain was based on the finding of the commissioner that AriseBank violated Chapter 30 of Texas Finance Code by using the term "bank" in his name and marketing material to imply that he is in the business of the bank in that state "
" L & 39 order requires that AriseBank cease and abstain from involving them in the bank business in Texas. AriseBank is further bound to make it clear that they are not offering their services to consumers in Texas, " it continues.
Arise has grown in importance. 39; last year when an alleged partnership with BitShares and a launch of an ICO was decried as a scam in crypto-currency circles.
Describing itself as "the first decentralized banking platform ", the project was led by Jared Rice, a character who himself has the ICO and the Arise partnership triggered a review of the website's activities, the researchers concluding in the same way that the Case was a "total scam"
Earlier, Cointelegraph reported that the state of Texas had also ordered the Bitconnect platform, now gone, to to stop selling unlicensed securities In the order of Texas, Arise must Now comply with the conditions and adopt a no – intervention consumer approach in Texas by January 26th, after failing to respond to the original January 5th order.
Cointelegraph could not verify situation with AriseBank because of its website no longer works as press time Monday.