SALT - the project that facilitates cash loans using cryptocurrency as collateral - announced they have reached a settlement with the U.S. Securities and Exchange Commission (SEC) regarding the offer and sale of SALT Tokens in its initial coin offering (ICO) spanning from 2017-19.
As part of the settlement, purchasers of the token who bought directly from the project (NOT traded through exchanges) up to December 31 2019 will be able to file a written claim to recover the amount paid with interest added.
In addition, without admitting or denying the findings in the legal order, SALT "...consented to the entry of an administrative order that requires it, among other things, to cease and desist from future violations of the offering and registration provisions of the federal securities laws (the “SEC Settlement”)."
Under the terms of the legal agreement, SALT Tokens will be registered "...under Section 12(g) of the Securities Exchange Act of 1934 as a class of securities, maintain that registration and make timely filings as required by law and the SEC Settlement, and pay a civil monetary penalty of $250,000."
Promising Beginnings
The initial signs for SALT were promising and on the opening of their services to residents in Washington D.C., Erik Voorhees cheekily suggested the U.S. Treasury should seek out a SALT loan.
Going Global
SALT currently provide loan services to residents in select states in the United States, as well as the countries of Bermuda, Brazil, Hong Kong, New Zealand, Puerto Rico, United Arab Emirates, Vietnam, Switzerland, and the United Kingdom.
According to the company, there are plans to expand the geographic reach to enable citizens worldwide to receive a cash loan by putting up their cryptocurrency as collateral.
A number of different cryptocurrencies are accepted.
Image: SALT
Price Impact
The news of the SEC settlement - which does appear to be modest compared to some other SEC ICO cases - was well received by the market and saw a pump in the price of SALT on increased volume.
Image: SALT 7 day price (CoinGecko)
Currently trading at around $0.12, like most ICOs, SALT has ridden the price rollercoaster ranging from a high of $17.22 in Dec 2017 all the way down to $0.04 two years later.
