$50 Million ICO Supported By Erik Voorhees is Under SEC Investigation

 

United States’ Securities and Exchange Commission (SEC) is investigating Salt Lending, a cryptocurrency loan provider. According to Wall Street Journal, the Salt’s 2017 ICO is the focus of the investigation.

The loans company received a subpoena in February asking for more detailed information about its $50 million token sale, which was conducted last year amid the ICO boom. More specifically, SEC is looking to find out whether the Salt’s token sale was registered with them, how Salt’s employees received tokens, as well as the overall distribution of tokens to subjects which were involved in the ICO.

The case is under additional public scrutiny due to the fact that Erik Voorhees, crypto pioneer, is a former advisor and board member of Salt. The WSJ article suggests that SEC is investigating whether Voorhees played a role in conducting a crypto-based fundraising while on the board at Salt Lending violated the 2014 ban.

Voorhees was charged in 2014 by the SEC for security violations and ultimately banned from facilitating a bitcoin token sale in the next five years, in addition to $50,000 fine. However, Voorhees “no longer serves in any formal capacity,” although he was a former contributor, according to SALT executive Jennifer Nealson.

Answering to allegations, Voorhees published a blog titled “Yet another Wall Street Journal Attack”, in which he described the WSJ article as “misleading and inaccurate”. His lawyer, Brian Klein, labeled the WSJ story as “unfair attack” on his client. Voorhees added that he is not involved in any private lawsuit.

“I am proud to represent Erik Voorhees, a real visionary, who has abided by his SEC settlement terms. This WSJ story is an unfair attack on him, relying on unsubstantiated allegations, anonymous sources, and he is not even a party to the lawsuit discussed,” said Klein.