Chinese Shopping Giant Bans Crypto Related Goods

Taobao released the changes which are concerned with the increased control of crypto and ICO-related products
11 April 2018   1602

Taobao is a Chinese online shopping website, headquartered in China, and is a subsidiary of Alibaba Group. It facilitates consumer-to-consumer retail by providing a platform for small businesses and individual entrepreneurs to open online stores that mainly cater to consumers in Chinese-speaking regions.

On April 10, 2018 Taobao has announced the new policy regarding the goods banned on the platform. The changes are concerned with the increased control of crypto and ICO-related products.

Taobao ban for product management specifications focuses on the goods related to blockchain technology, virtual currency and other digital products and services. It is stated that digital currency and similar digital products can easily be used for speculation and illegal fund-raising and can lead to a financing risk. 

The ban concerns Bitcoin, Litecoin, Biocoin, Quark, Unlimited, Cocoa, Penny, PPCoin, NameCoin and other digital currencies; products with the same technical properties and generating mechanisms as digital currency, such as digital pets generated based on blockchain technology; digital currency tutorials, strategies and software, such as mining hardware; ICO and derivative services which provide digital currency, such as technology development, business planning, brokerage, marketing, and other.

The new rules come into effect on April 17, 2018.

CEO AriseBank Admitted to Fraud

Now Jared Rice faces up to 120 years in prison, however, confession may reduce this period to 20 years
22 March 2019   181

AriseBank CEO Jared Rice confessed to deceiving investors for $ 4.2 million in cryptocurrency. The plea agreement filed in the federal court of Dallas, Dallas News кузщкеы.

According to the document, Rice promised investors a "guaranteed return" of up to 20% of the invested funds, as well as opening bank accounts insured by the Federal Deposit Insurance Corporation and Visa-related debit and credit cards, although he did not have agreements with these companies.

The $ 4.2 million received from the ICO Rice spent on his girlfriend, lawyers, as well as on hotels, food and trips by Uber.

It is noteworthy that Jared Rice’s plea for cryptocurrency fraud was one of the first of its kind in the United States.

Now Rice faces up to 120 years in prison. However, confession may reduce this period to 20 years. Also, the organizer of the scheme will have to pay damages to deceived investors.

The final verdict on the case will be delivered on July 11.

Jared Rice was arrested in November 2018 on charges of fraud with unregistered securities and fraud using electronic means of communication. In December, the US Securities and Exchange Commission (SEC) obliged him and Stanley Ford, co-founder of AriseBank, to pay about $ 2.7 million as part of the settlement of the charges.