Crypto lending platform Salt has paused withdrawals and deposits, citing the impact of the FTX collapse.
In a message to its account holders, Salt stated the fall of FTX has greatly affected its business. As a result, the firm will immediately halt withdrawals and deposits on the platform.
The lending platform also noted that this would last until it can ascertain the extent of the exchange’s impact and with specific details that it believes are factually correct.
Salt stated that while it might acknowledge on-chain deposits, it advises its holders against making more deposits into their accounts until the firm communicates its plan about the way forward.
Following this announcement, BnKToTheFuture terminated its non-binding letter of intent with Salt. Earlier in September, the company agreed to buy Salt Lending to allow users to borrow against their crypto holdings like lenders, such as Celsius Network and Voyager Digitals.
The company's CEO, Simon Dixon, stated they want to provide an option for distressed lending companies that may be unable to come out of bankruptcy due to regulatory issues.
In a statement, the company said,
“BnK To The Future (the “Company”) announces that its previously announced non-binding letter of intent with SALT Blockchain, Inc. (SALT) has terminated due to SALT’s position with FTX and for failing BnK To The Future’s Due Diligence, and that the transactions contemplated thereby will not proceed.”
The company also stated that BnKToTheFuture is not impacted either by FTX or SALT because the company has no connection with them, and all clients' funds are completely segregated and uninvested.
Also, some crypto activists have aired their opinion following the announcement by Salt, urging users to withdraw their funds. However, Salt Lending founder, Shawn Owen, countered their view, stating that the firm’s announcement does not mean outright bankruptcy. Rather, it is only pausing withdrawals to deal with the FTX fallout.
