Salt Lending to Begin the Process of Refunds to Investors in Early 2021
“Anyone who bought SALT from us directly before and including 12/31/2019 will have an opportunity to submit a written claim at a later date to recover the consideration paid plus interest,” tweeted SALT Lending.
This has been in response to the Securities and Exchange Commission (SEC) ordering Salt Blockchain, the owner of the lending platform that offers dollar-denominated loans collateralized by cryptos that it has to refund the raised amount to investors.
As per the SEC’s decision, the token is deemed a security because Salt told investors they could expect to make a return on their investment. Investors will have three months after the filing of a registering statement to submit their claims to Salt, which the company is obligated to pay back with any agreed interest.
“We're in the early stages of registering the token with the SEC,” said Salt adding that the claim form is expected to be available “in the early part of 2021.”
The refunds for tokens purchased will be provided directly from the company, as per the SEC Order, and if one no longer holds the tokens, they will be asked to provide the evidence of loss or damages.
The company raised $47 million in its initial coin offering (ICO) starting in 2017 through 2019.
Interestingly, the news of Salt reaching a “settlement” with the SEC, which means the company doesn’t have to agree or deny the agency's findings, worked in its token’s favor. In the past 24 hours, the SALT price has spiked nearly 150%.
At the time of writing, SALT has been trading at $0.131 with a 24 hour ‘real' volume of $106,183