Crypto lender SALT in acquisition talks, 2 years after SEC settlement

Crypto lender SALT is eyeing an acquisition nearly two years after it was accused by the US securities watchdog of running an unregistered initial coin offering (ICO).

Secured Automated Lending Technology (SALT), which allows users to take out crypto-backed loans, said on Friday it was in talks with digital assets and fintech investment platform Bnk To The Future (BF).

BF has signed a letter of intent to purchase SALT, the companies said in a statement. The agreement is dependent on final agreements and regulatory approval.

SALT said the deal would strengthen its product line. The Denver-based lender noted that its customers’ loan terms, security for investments and services would remain unchanged as it tries to hash out the terms with BF.

Blockworks attempted to contact both companies to understand the terms of the agreement, but has yet to receive a response.

SALT launched in October 2017 – peak ICO mania – when bitcoin was on its way to $20,000 for the first time.

The startup ran afoul of the Securities and Exchange Commission (SEC) in September 2020, when it was charged with running an unregistered ICO from June 2017, which by December of that year had raised $47 million.

The firm settled the charges and agreed to pay a civil penalty of $250,000 and return money to investors who started a claims process. SALT has since become a registered entity with the SEC, meaning it must now file regular financial statements.

SALT’s native token of the same name has doubled since news of the potential acquisition first broke on Friday, trading at $0.077 – down 75% over the past year and more than 99% below its record high of $17.22 in December 2017.

As for BF, it was founded in 2011 by former investment banker turned bitcoin backer Simon Dixon. It helps qualified investors raise money for companies, funds and other products with a focus on the finance of the future.

BF was a lead investor in troubled crypto lender Celsius, which filed for bankruptcy in July, nearly a month after it froze withdrawals. It is reported that more than 1,000 BF users were affected by Celsius’ collapse, with Dixon himself one of the platform’s top depositors.

The Cayman Island-registered firm claims to have facilitated more than $1.7 billion worth of investments over the years.

David Canellis contributed reporting.

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