The Court Fined a Cryptocurrency Bank on Amount of $2.3 Million for the First Time

AriseBank, the first Cryptocurrency Bank in the World, and its founders will pay more than $2.3 million to settle charges of fraud.

The penalty will be paid by a decision of a court. The US Securities and Exchange Commission (SEC) brought accusation to the bank and its owners of fraud in initial token offering and in creating a cryptocurrency bank.

The court also decided to freeze the assets of AriseBank.

The founders of AriseBank Jared Rice and Stanley Ford agreed to pay civilian fines in amount of $184,767 for each, according to the statement of the Commission.

To settle the SEC’s charges, Rice and Ford agreed to bear joint and several liability in the amount of $2.3 million plus $68.423 thousand in the form of percents. They also agreed to a lifetime ban on performing the functions of officials and directors of public companies and a ban on participating in digital securities offering.