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.

Nov 16, 2022 at 10:27 p.m. UTC

Updated Nov 17, 2022 at 1:44 p.m. UTC

salt — California's DFPI is suspending Salt's license (Getty Images)

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Follow @NelWang on Twitter

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.

Read more about

California DFPI Regulation

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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.