According to a company email sent to customers, the cryptocurrency lending platform Salt has paused withdrawals and deposits due to FTX effect.
In a message attributed to CEO Shawn Owen, the company stated that “the collapse of FTX has impacted our business.” The full extent of the exposure, however, was not disclosed in the message.
SALT CEO stated,
“Launched in the first few months of 2018, SALT Lending is a service that facilitates loans secured by cryptocurrency. To put it another way, consumers may get a loan without having to liquidate their cryptocurrency.”
In September 2020, the Securities and Exchange Commission (SEC) charged SALT Lending with issuing an unregistered security, and the company was forced to refund the $47 million it had received in an initial coin offering (ICO).
Owen stated that the company plans to be as open and honest as possible as it collaborates with its partners to ensure a clear path forward.
In a letter to customers, SALT stated that it would honor on-chain deposits but advised them not to add any additional funds to their accounts until the company provided more information about its future plans.