Based on a recent report, the Securities and Exchange Commission(SEC) has launched a full-scale investigation on a Cryptocurrency loan platform— Salt Lending. The SEC has reportedly sent a subpoena to the company.

Salt Lending had a $50 Million ICO

According to a previous report, the investigation by the SEC is as a result of the company’s 2017 initial coin offering. The ICO fetched the company a whopping investment of not less than $50 Million.

A recent report also made it known that a former board member of SALT Lending, Erik Voorhees is also under investigation by the agency. The report made it know that he violated a 2014 SEC settlement that prevents him from participating “in any issuance of any security in an unregistered transaction in exchange for any virtual currency including Bitcoin for a period of five years.”

Voorhees has since come out to refute the claims of the report. He described the report as “inaccurate and misleading.”

The SEC made it known that it is quite particular about determining whether “the ICO constituted an unlicensed securities offering, while also investigating how the proceeds were spent.”

To further confirm that it is under the SEC’s lenses, SALT lending issued a statement regarding this. The statement made it known that the company was subpoenaed in February this year. According to the report, this was around the time that the SEC’s enforcement division opened investigations into “dozens” of crypto startups who had raised funds through ICOs that the agency believes may have been illegal securities offerings.

Fresh Law Suit

To make matter worse for the crypto lending firm, a former SALT financial officer has filed a lawsuit against the firm. The lawsuit made it know that the company lost $4 million in cryptocurrency has a result of a hack which took place around the time the company was originally subpoenaed. The lawsuit also claims that the company is quite notorious for giving favorable loan terms to company executives and their family members.