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IEG Holdings places cryptocurrency offering plans on hold

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IEG Holdings places cryptocurrency offering plans on hold

IEG Holdings Corp has decided not to pursue a cryptocurrency offering or any other cryptocurrency-related ventures at the moment "after considering the potential risks and benefits," the company said in a statement.

The announcement came about two months after IEG disclosed plans to create its own cryptocurrency backed by gold metal through a company called Investment Evolution Crypto LLC. The cryptocurrency would be registered with the SEC as a security, the company said at the time.

The company will monitor the "developing" regulatory environment around crypocurrencies and coin offerings, it said. The SEC said on March 7 that digital currency exchanges may be operating illegally by conducting trades without registering as a venue for securities — a term the regulator said applies to most, if not all, coins and tokens.

While the cryptocurrency development has been put on hold, the company will continue to explore the potential application of blockchain technology to its core consumer lending business, IEG said.

Additionally, IEG Chairman and CEO Paul Mathieson, who is also the CEO of Investment Evolution Coin Ltd., intends to distribute each IEG shareholder of record as of 5 p.m. ET on April 30 the same number and percentage of ordinary fully paid up shares in the issued share capital of Investment Evolution Coin Ltd. as the number and percentage of IEG common shares they held as of that date.

Investment Evolution Coin Ltd. is a Singapore-incorporated, public unlisted company limited by shares that is exploring the launch of a new cryptocurrency in Singapore and select other jurisdictions to be called Investment Evolution Coin.

The company has entered into a consulting agreement with Silicon Valley-based cryptocurrency and remittance consulting company Hashcash Consultants to implement and launch the new cryptocurrency. The targeted launch date is May.

There are currently 17,463,449 outstanding shares of common stock in IEG and no other outstanding shares, convertible debt, warrants or options.