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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.

Ni Nelson Wang
Na-update Nob 17, 2022, 3:24 p.m. Nailathala Nob 16, 2022, 10:27 p.m. Isinalin ng AI
California's DFPI is suspending Salt's license (Shutterstock)
California's DFPI is suspending Salt's license (Shutterstock)

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.

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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.

CaliforniaDFPIRegulation

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