Claims Process FAQ
Pursuant to the SEC Settlement Order, we must commence a claims process informing all persons and entities that purchased Salt Tokens from us of their potential claims under Section 12(a) of the Securities Act and informing purchasers that they may submit a written claim on a claim form, or the Claim Form, directly to Salt. We must commence the claims process by distributing and posting on our website the Claim Form no later than the Claim Form Distribution Date. Such Claim Forms must be submitted by purchasers to us by the Claim Form Deadline.
The following questions and answers provide additional details regarding the claims process:
What is the claims process?
The claims process consists of informing all parties who obtained Salt Tokens from the Company on or before December 31, 2019 of their potential claims under Section 12(a) of the Securities Act, including the right to sue to recover the consideration paid for such security with interest thereon, less the amount of any income received thereon, upon the tender of such security, or for damages if the purchaser no longer owns the Salt Tokens and informing purchasers that they may submit a written claim on the claims form directly to Salt Blockchain Inc. at an address indicated on the claims form of a purchaser’s assertion of rights under Section 12(a) of the Securities Act, and that such claims must be submitted by the Claim Form Deadline, which, as used in this Form 10, is the earlier of (i) three months from the date that the SEC Division of Corporation Finance notifies us that its review of this Registration Statement has been concluded or (ii) six months from the effective date of this Registration Statement.
Why are you engaging in the claims process?
We are engaging in the claims process pursuant to the Offer of Settlement that the SEC has determined to accept on September 30, 2020.
Who is entitled to make a claim?
All persons and entities that obtained Salt Tokens from the Company on or before December 31, 2019 are entitled to make a claim pursuant to the claims process. A valid claim, among other things, would require the claimant to return the Salt Tokens obtained directly from the Company, or, substantiate that these were sold on an exchange at a loss, including their value at the time of sale.
What will I receive if I make a claim?
Purchasers who are approved for a claim are entitled to recover the consideration paid for Salt Tokens that you purchased with interest, less the amount of any income received. Purchasers must tender eligible Salt Tokens to us to receive such amount. If a purchaser no longer owns the purchased Salt Tokens, such purchaser will be entitled to recover damages.
How is the price at which I purchased tokens determined?
The price at which you purchased Salt Tokens will be equal to the price in U.S. Dollars of the Salt Tokens purchased as of the date of purchase.
How was the interest determined?
We expect to calculate interest by using the yield of the 1-year U.S. Treasury note, which for June 15, 2021 was 0.08%.
When does the claims process terminate?
You must submit your Claim Form by the Claim Form Deadline, which shall be the earlier of (i) three months from the date that the Division of Corporation Finance notifies us that it has completed its review of this Registration Statement or (ii) six months from the effective date of this Registration Statement.
What happens to my tokens if I do not participate in the claims process?
You are free to continue to hold your Salt Tokens even after the claims process closes. However, you should know that Salt Tokens currently may only be used for the following purposes: (i) to obtain a reduced interest rate on a loan; (ii) to repay outstanding interest on a loan; (iii) to pay loan fees; and (iv) as partial collateral for a loan. In addition, numerous factors could materially and adversely affect us or the value of Salt Tokens. See “Risk Factors – General Risks Related to Digital Assets” and “– Specific Risks Related to Owning Salt Tokens” below for additional information on the risks of holding Salt Tokens.
What do I need to do if I want to participate in the claims process?
To be eligible to receive a recovery, you must complete and submit a valid Claim Form and all required supporting documentation (i) electronically via Prime Clerk’s E-Claim Portal or via a Paper Copy returned by mail, overnight courier, or hand delivery to Prime Clerk at the following address: SALT Token Claim Processing c/o Prime Clerk, One Grand Central Place, 60 East 42nd Street, Suite 1440, New York, NY 10165
What do I need to do if I do NOT want to participate in the claims process?
If you decide that you do not want to participate in the claims process, you do not need to do anything. Please see the next question below for more details.
May I participate in the claims process solely with respect to a portion of my tokens?
Assuming that you submit a valid claim, such claim may be solely for a portion of your Salt Tokens.
Can I change my mind after I have sent in my claim form?
At any time after sending in the claims form and before qualified claimants claim being satisfied, a claimant is entitled to change claimant’s mind by contacting the claims administrator.
When, how and in what form will payment be made?
Claim recipients will be paid in U.S. Dollars. Payments will be made within three months from the Claim Form Deadline to a bank account designated by you in the claims form.
Who can help answer my questions and what is their contact information?
The Company’s claims administrator, Prime Clerk, can help answer any questions regarding the claims process by contacting them via email at [email protected] or postal mail to: SALT Token Claim Form Processing c/o Prime Clerk, One Grand Central Place, 60 East 42nd Street, Suite 1440, New York, NY 10165. You can also contact the Company’s customer support by email at [email protected].