SEC Orders Salt Lending to Refund Investors in Its $50M ICO
The U.S.’s top financial watchdog has ordered Salt Lending to offer investors refunds for its 2017 initial coin offering (ICO).
- The Securities and Exchange Commission (SEC) told Salt Lending, a protocol offering dollar-denominated loans collateralized by cryptocurrencies, it had fourteen days to begin the process of offering refunds to investors.
- In a public letter, the SEC said that Salt’s ICO violated securities regulation as they told investors they could reasonably expect to make a return on their investment.
- Investors will have three months to submit a claim to Salt, who will be obligated to pay back their investment along with any agreed interest.
- Salt will also have to pay a $250,000 civil penalty to the Commission in the next ten days and has agreed to settle the action.
