California Finance Regulator Moves to Suspend Crypto Lender Salt’s License
Salt announced on Tuesday it was pausing customer withdrawals due to the impact of FTX’s collapse.
California's Department of Financial Protection and Innovation (DFPI) said Wednesday it was moving to suspend Salt’s license for 30 days as the regulator investigates the crypto lender’s decision this week to pause client withdrawals.
On Tuesday, Salt announced it was pausing client withdrawals and deposits due to the impact of the collapse of crypto exchange FTX.
Also on Tuesday, online investing platform Bnk To The Future said it had terminated its previously announced non-binding letter of intent to acquire Salt due to the latter’s FTX exposure.
The DFPI took a similar action to suspend the license of crypto lender BlockFi last week for also halting withdrawals due to FTX’s collapse. The department said it is also separately investigating FTX.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.