Crypto loan continues to pause withdrawal citing FTX exposure
Crypto loan continues to pause withdrawal citing FTX exposure
An investment company led by Bitcoin supporter Simon Dixon has canceled plans to take over the competitive crypto loan Salt, who has suspended payments for engagements in FTX.
Dixons Investment unit bnktothefuture it said Tore his non -binding declaration of intent on the positions of Salt at FTX, which are no longer valid after a dramatic week with allegations of the abuse of customer funds and other incorrect behavior of companies.
bnktothefuture added that Salt (Secured Automated Lending Technology) did not pass his DUE diligence examination.
Also on Tuesday Shawn Owen, CEO of Salt, said that the platform would suspend and make deposits with immediate effect due to its engagement in FTX.
salt, which signed the letter in September with BnktotheFuture, enables users to take out crypto -assisted loans: "As soon as you have repaid your loan, we will return your assets," says the website.
"I am sorry to have to tell you that FTX's collapse has impaired our business. Until we are able to determine the extent of these effects based on specific details, which we are convinced of that they are factually correct, we have immediately exposed deposits and payments on the Salt platform," said Owen wrote .
The native token of the same name from Salt fell quickly after sending the message by more than 20 %. It is now being traded at less than $ 0.0328, which corresponds to a decline of 70 % in the previous year and 99.9 % below its all -time high of $ 17.22 from December 2017
Customer loans remain active and are monitored, said Owen, while Salt tries to find a way forward with his partners. In the meantime, the platform will recognize on-chain deposits, but Owen emphasized the users not to transfer any funds to their accounts.
"We hope that we have mainly committed ourselves to the protection of our customers and work around the clock to do everything to do that this is our top priority."
Salz went wrong The US Securities and Exchange Commission in September 2020 against its initial from 2017 Coin offer, which regarded the supervisory authority as an unregistered value of valuery. The startup was then asked to pay a civil penalty of $ 250,000 and to repay the $ 47 million collected to investors.
Not only crypto lenders, Liquid also releases payments
Bnktotheefuture from Dixon said it was neither influenced by Salt nor by FTX. The company that helps accredit investors to support Fintech and crypto projects has no connection to both platforms and that all customer funds are "completely separated and not invested", per a Blog entry .
However,BnktotheFuture had its fair share of fighting this year. It was the main investor of the failed crypto loan Celsius in 2020 and at the time of his bankruptcy in July kept 5 % of the company with 1,039 BnktotheFuture user exposed .
DIXON itself was one of Celsius' top inserts when it was bankrupt, although he said that the money held on the platform was "a small percentage of his assets". Dixon, BnktotheFuture and Salt did not immediately respond to inquiries about comments.
Salt had undoubtedly hoped that the BnktotheFuture deal would lead to a cheap buyout in view of the bumpy history of the platform and the widespread problems for crypto creditors.
The competing platform and former Tech-Unicorn Blockfi also suspended payments last week and is now reported on the bankruptcy. Prominent competitor Celsius, Voyager and Hodlnaut everyone went at the beginning of this year after the algorithmic Stablecoin ecosystem Terra bankruptcy.
Apart from the lenders, the hedge fund Ikigai based in the USA was left bloody after finding that he could not deduct most of his customer funds from FTX.
The Japanese FTX exchange Liquid Global was also hit. Liquid, founded in 2014 and one of the oldest crypto platforms in Japan, exposed the withdrawals on Tuesday for both Fiat and for crypto as part of FTX's bankruptcy according to Chapter 11.
Liquid was adopted by February in February as part of the expansion efforts in the normally strict case law.
David Canellis contributed to reporting.
h/t: tiffany Fong
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The article Crypto Lenders Keep PaUsing withdrawals Citing FTX Exposure is not a financial advice.