cryto

bitcoin

SEC Scrutinizing Erik Voorhees’ Crypto Loans Firm “Salt”, as per Wall Street Journal

Salt Lending Holdings Inc., the cryptocurrency loans company associated with high-profile crypto industry figure Erik Voorhees, is facing an SEC probe over its $50 million token sales, as per the reports of WSJ on Nov. 15.

It is to be noted that Salt was founded in 2016 and uses clients’ cryptocurrency holdings as collateral against fiat currency loans. It did a token sale in 2017 for raising funds. According to the “sources familiar with the matter”, Salt is alleged to have received a subpoena from the securities regulator in the month of February.

The SEC is said to be investigating whether Salt’s token sale was a noncompliant securities offering, how token proceeds were used, and the manner in which Salt employees received tokens, among other issues.

Voorhees, who is famous as the CEO of digital assets and cryptocurrency exchange ShapeShift, is alleged to have played a “leadership” role at Salt. Notably, he is listed as a “director” in an SEC filing five days ahead of the first SALT token sale in August 2017.

It is to be noted that Voorhees has earlier been investigated by the SEC and has effectively been proscribed from raising money in private markets. In 2014, he made a settlement with the SEC amounting to $50,000 in fines and disgorgement over allegedly unregistered public offerings of securities. These securities were connected with two of his early Bitcoin-related ventures.

In addition to being named as a Salt director on the company’s site and promotional materials, Voorhees was also listed on Salt’s summer 2017 SEC filing, according to the WSJ’s review. It is to be noted that Salt purportedly amended its SEC disclosure, declaring the $1.5 million it had raised, and refraining from any mention of Voorhees, in November 2017.

A Salt executive, Jennifer Nealson has confirmed to the WSJ that the firm received a subpoena in February. She further clarified that Voorhees was an “early contributor” to Salt, but “no longer serves in any formal capacity.”

Voorhees repudiated a Wall Street Journal report, earlier this fall, that alleged that $9 million in ill-gotten funds were laundered through ShapeShift. He claimed that the WSJ had misrepresented the information provided by the exchange.

Related Posts

Leave a Reply

Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

HOT TOPIC

blockchainIn, , ,
Bitcoin Approaching Bottom, Institutional Money may “Explode Crypto”, as per Dollar Vigilante
January 14, 20190
blockchainIn, , , ,
Singapore Might Trigger Next Wave of Crypto Adoption by Making Regulations Next Year, Says the CMO of Cryptology
January 14, 20190

LITECOIN NEWS

In, , ,
CoinMarketCap’s Two Crypto Indices Launch on Reuters, Nasdaq & Bloomberg Terminal
March 22, 20190
In, , , ,
Toronto-Based Coinberry Announces Addition of XRP Cryptocurrency
March 22, 20190


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin3,981.42 0.12 % 0.20 % 0.43 %
Ethereum136.58 0.03 % 0.17 % 3.26 %
XRP0.309 0.12 % 0.33 % 2.47 %
Litecoin60.44 0.42 % 2.41 % 0.69 %
Bitcoin Cash164.87 0.15 % 6.36 % 6.54 %