Leading United States regulatory authority SEC has ordered Salt Lending to offer investors refunds for its earlier 2017 ICO [Initial Coin Offering].
The SEC [Securities & Exchange Commission] revealed that the Salt Blockchain Inc., the owner of the lending platform that offers dollar-denominated loans collateralized by cryptocurrencies, that it might need to begin the process of offering refunds to investors.
It will have 14 days to issue an official press release, announcing the order, on its website.
Within the public letter, the SEC added that Salt’s ICO violated securities regulations by not registering the sale beforehand.
The SEC added that the token counted as security because Salt told investors that they might expect to form some returns on their investments.
Investors will have 3-months after the filing of a registration statement to submit a claim to Salt, which can be obligated to pay back their investment alongside an agreed interest.
Salt has agreed to settle the action & is liable to pay a $250k civil penalty to the Commission within the next 10 days.
The lending platform has also agreed to register its SALT tokens – presently trading at a price of around $0.125 USD – as securities with the SEC.