The Securities and Exchange Commission (SEC) is investigating Crypto loans company Salt Lending Holdings Inc, over the $50 million it raised in its Initial Coin Offering (ICO) in 2017. Erik Voorhees, who is one of the high-profile early adopters of Bitcoin was the famous name associated with the company.
As per a report by the Wall Street Journal, Salt was set up in 2016 and has been a company that uses clients’ cryptocurrency holdings as collateral against fiat-based loans, “sources familiar with the matter” told the news portal.
Interestingly, among other issues, the US regulatory body is investigating if the token sale carried out by Salt was in compliance with the regulations that have been laid down by the body. Voorhees who is currently the founder of the cryptocurrency exchange, ShapeShift, was in a “leadership” position, as he was named as a director of the company, in an SEC filing five days ahead of the first SALT token sale in August 2017.
This is not the first time Voorhees has been summoned or investigated by the SEC. Due to his earlier skirmishes with the regulatory body, he has been barred from raising money in private markets. In as early as 2014, he had to pay $50,000 as settlement over allegedly unregistered public offerings of securities in connection with two of his early Bitcoin (BTC)-related venture.
Apart from that, Erik Voorhees was also named as a recipient in an email thread which served as evidence when Charlie Shrem’s assets were frozen on the orders of a court. The email had stated that Shrem was helping an unknown individual, who had 5000 BTC in his wallet and needed help from Erik Voorhees, Roger Ver and Ira Miller to create a cold wallet.