California Regulator Moves to Suspend Crypto Lender SALT's License

California's Department of Financial Protection and Innovation (DFPI) has issued a notice on Wednesday (Nov. 16, 2022) to suspend SALT Lending LLC's California Financing Law license for 30 days pending the Department's investigation into SALT's recent announcement to limit its platform activity including pausing client withdrawals. 

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On Nov. 15, 2022, SALT Lending LLC sent a communication to customers signed by CEO Shawn Owen stating, "I am sorry to report that the collapse of FTX has impacted our business. Until we are able to determine the extent of this impact with specific details that we feel confident are factually accurate, we have paused deposits and withdrawals on the SALT platform effective immediately."

The DFPI is investigating SALT's compliance with the laws within the Commissioner's jurisdiction, including the California Financing Law. This action follows the DFPI's action against licensee BlockFi​ on Friday for similar concerns. 

The DFPI is also investigating FTX.