AriseBank, Inc.'s former CEO Jared Rice Sr. and former COO Stanley Ford have been ordered in federal court to pay nearly $2.7 million, in connection with a complaint filed Jan. 25 by the Securities and Exchange Commission for an allegedly fraudulent initial coin offering.

AriseBank and the two former executives allegedly sold unregistered investments in their purported "AriseCoin" cryptocurrency by pitching the company as a first-of-its-kind decentralized bank that offered its own cryptocurrency for customer products and services.

Rice and Ford agreed to be held jointly and severally liable for about $2.3 million in disgorgement plus $68,423 in prejudgment interest, and each must pay a $184,767 penalty, to settle the SEC's charges.

The two former executives have also been prohibited from serving as officers or directors of public companies or participating in future offerings of digital securities.

They agreed to the settlements without admitting or denying the allegations in the SEC's complaint.