SACRAMENTO – The Department of Financial Protection and Innovation today announced that Commissioner Clothilde V. Hewlett issued an order suspend SALT Lending LLC’s license under California finance law for 30 days pending investigation by the DFPI.
The suspension follows the DFPI Notice of Suspension issued November 15, 2022, which was prompted by SALT Lending LLC’s November 15, 2022 announcement that it would limit platform activity, including the suspension of customer withdrawals. SALT Lending LLC did not subsequently request a hearing on the DFPI Notice of Suspension.
SALT Lending LLC’s announcement to suspend withdrawals came days after the apparent failure of crypto-asset platform FTX. On November 10, 2022, DFPI announced its investigation into FTX. FTX and its affiliated entities filed for bankruptcy the following day, November 11, 2022.
On November 15, 2022, SALT Lending LLC sent a client communication 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 are satisfied are factually accurate, we have suspended deposits and withdrawals on the SALT platform with immediate effect.
SALT Lending LLC reports to the DFPI that it has stopped offering loans in California.
The DFPI expects any securities provider, lender or other financial services provider operating in California to comply with our financial laws. If you have been affected by these events, please contact the DFPI online (dfpi.ca.gov/file-a-complaint) or call toll free at (866) 275-2677.
The DFPI administers the state’s lending and banking laws, the recent California Consumer Financial Protection Act, and state securities laws, which govern broker-dealers, investment advisers, and matters raw. Learn more about dfpi.ca.gov.