SEC To Decide On Legality Of Salt's Token Sale
The US Securities and Exchange Commission (SEC) has initiated an investigation on activities of Salt Lending Holdings, the crypto credit company, which previously collaborated with Eric Voorhees, a well-known representative of the crypto industry, Wall Street Journal (WSJ) reports.
According to sources familiar with the situation, Salt received a subpoena from the regulator in February 2018. One of the issues that the Commission is considering is related to a $50 million token sale in 2017. The SEC is trying to figure out whether it can be viewed as a securities offer, how tokens were used, and how the company’s employees received them.
There is one more thing – Erik Voorhees, executive director of the ShapeShift crypto exchange, was registered as the director of Salt five days before the token sale in August 2017. The problem is that Voorhees was already involved in the SEC investigation and was forbidden to take part in the private investment market. That time he was fined for $50,000.
Salt Executive Director Jennifer Nealson confirmed the receipt of the subpoena from the regulator and said that Voorhees was an investor of the company at an early stage of development and now has nothing to do with it.
If the participation of the ShapeShift chief in the work of Salt is proved, then he and the company will face sanctions for breaking the law. Voorhees’ advocate stated that all the accusations against his client are baseless.
Earlier, Voorhees denied accusations in laundering $9 million by the WSJ.