Another victim has come to the fore in the crypto crisis sparked by the collapse of FTX. Bitcoin and altcoin lending platform Salt Lending also announced that it was affected by FTX. Here are the details…
FTX has also impacted this Bitcoin platform
The FTX issue caused another platform to have issues: Salt Lending. Online investment platform Bnk To The Future said it has terminated its previously announced non-binding letter of intent to acquire Salt Lending due to Salt Lending’s exposure to FTX risk. In the said non-binding letter of intent, it was announced that the agreement was terminated “due to SALT’s position in FTX and its failure to meet the terms of Bnk To The Future”. For this reason, it came to the agenda that they would not continue the planned transactions.
In addition, the statement emphasized that “Bnk To The Future” has nothing to do with Salt or FTX. “Bnk To The Future has no direct or indirect affiliation with SALT or FTX. All client funds are fully reserved and no investment has been made on these platforms,” he said. On September 2, Bnk To The Future said that it has agreed to acquire Salt Lending for an undisclosed amount to give users the ability to borrow money in exchange for crypto assets. The deal was dependent on the signing of definitive agreements and obtaining regulatory approvals.
Salt had paused deposits and withdrawals
Salt is the latest crypto lending platform to be hit by the FTX boom, which began with a question-raising report about the balance sheet of trading firm Alameda Research, FTX’s sister company. cryptocoin.com Finally, as we reported, the crypto lending platform BlockFi has stated that it is pausing customers’ withdrawals. It is reported that he is preparing to file for bankruptcy.
According to a tweet from YouTuber Tiffany Fong, Salt had previously emailed customers that it was pausing deposits and withdrawals on its platform due to the impact of FTX’s collapse on the business. The note did not specify how much exposure Salt had to FTX. But he said customers’ loans will remain active and all credit monitoring systems will be fully operational. In a separate tweet, Shawn Owen, Salt’s CEO, said, “We are still fully committed to recouping the losses.” Founded in 2016 and headquartered in Denver, Salt was one of the first companies to enter the crypto lending arena before companies like Celsius and BlockFi.
