This is the end of another episode in the war on ICOs (initial coin offering) that the SEC (Securities and Exchange Commission) has been waging for several years in the United States. Indeed, the company SALT has just announced that it has made an arrangement with the supervisory body. From 2017 until 2019, the company sold SALT tokens to its community without meeting registration requirements. In addition to repaying investors, the loan company was granted a waiver allowing it to participate in future fundraising activities. A rather happy ending when you take a closer look at the cases of other projects pinned for the same reason.
A fine of 250,000 dollars and the total restitution of the 47 million mobilized
Under the SEC order, SALT will be required to set up a complaints procedure for people who took part in said ICO. Investors will have three months to file a registration statement in order to submit their claims to the company. They will be able to assign their Salt tokens for the equivalent investment, less the amount of any income received. For those of them who no longer have assets, it is planned damages in accordance with section 12 (a) of the Securities Act.
The entire process will be closely monitored by the SEC as agreed in the agreement signed with SALT Lending. Thus, the latter will submit to the instance a monthly report on complaints received and those paid as part of its voluntary complaints procedure. It is therefore $ 47 million that will have to be returned SALT Lending to its investors, ie all of the funds raised during the ICO. In addition to the repayment plan, the member will pay a civil pecuniary penalty of $ 250,000.
An essential agreement for a good resumption of activities
Justin English, the CEO of SALT Lending, wished to thank the SEC for the way in which it collaborated with its team, but also for the exemption which benefited its company. “As a member of Salt’s current management team, I can vouch that this experience has certainly been a lesson in humility. While it has forced us to take a break from a number of initiatives and product launches, it has also given us time to think about how we want to move the business forward. I am excited about the future of Salt and grateful for the opportunity to pursue our vision to create products and services that will help our clients build and preserve their wealth. “.
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Following this agreement, the company is working to finalize the first steps of registering its token with the SEC, the application for which should be effective at the beginning of the year 2021. SALT is neither the first nor the the last of the projects to deal with the SEC.