SEC urges Salt Lending to return $ 47 million in ICO proceeds to investors

Salt Lending, a London, UK-based crypto lending platform, has been hired by the SEC to create a process through which investors in an ICO offering of $ 47 million can get their invested money back.

The SEC has one document according to a court order yesterday regarding Salt Blockchain Inc or Salt Lending. Salt reached an agreement with the SEC pending a token shutdown, the statement said. The SEC ruled that Salt violated Sections 5 (a) and 5 (c) of the Securities Act of 1934 when Salt offered and sold tokens without a registration report filed with the SEC or in effect.

The company’s alleged acts violated Section 5 (a) of the Data Protection Act and made any sale or movement of unregistered securities between states illegal. Salt is also alleged to have violated Section 5 (c), which makes it illegal for anyone to sell unregistered securities, directly or indirectly, to interstate securities. According to the court order, a proposed settlement will see Salt neither acknowledge nor deny the allegations.

In addition to registering its tokens as securities, SALT must commit to a refund procedure as part of the proposed settlement.

Shawn Owen, CEO of Salt Lending

In June 2017, Salt launched an ICO that successfully raised $ 47 million. Salt then raised an additional $ 1.2 million from the post-ICO Salt token sale, on which the company has no registration statement for the sale or offering of Salt tokens or any other entitlement to a subscription waiver, according to the SEC ruling .

In 2018, the SEC called on Salt to investigate whether ICOs were an unregistered security and also how the company used its assets. Salt sold the last Salt Token on August 16, 2019.

“Salt partnered with the SEC and has been working on an agreement for several months. During this time, Salt has continued to grow, proving the profitability of the lending business and technology described to investors in relation to ICOs, ”the company said in a statement released on Wednesday. “After the company and the SEC reach an agreement, Salt plans to expand its product offering with products that focus on asset management and capital preservation.”

Thach Sanh

According to The Block

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