SALT is a protocol developed back in 2016 to create a blockchain-native and automated borrowing and lending platform. During the ICO boom of 2017, the team behind SALT decided to sell the blockchain’s native asset SALT to investors and raised $47,000,000.
The SEC served SALT Lending with a cease-and-desist stating that “No registration statements were filed or in effect for any of the Salt Token offers and sales, and the offerings did not qualify for any exemption from registration”. Additionally, a further $1,200,000 were raised post-ICO sales with last token sale having taken place on August 16th 2019.
After receiving this order from the SEC, SALT Lending must issue a press release within 14 days. They must also “pay the amount due under Section 12(a) of the Securities Act, if any, to each qualified person or entity that purchased Salt Tokens from Respondent before and including December 31, 2019, and that submitted a written claim to Respondent’s address by the Claim Form Deadline using the Claim Form. Within three (3) months from the Claim Form Deadline, Respondent will make all payments it deems to be due and adequately substantiated to purchasers who submitted the Claim Form by the Claim Form Deadline.” In addition to these, SALT Lending must pay a $250,000 civil money penalty to the SEC.