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Crypto lender SALT secures $64.4M for relaunch

Winnie Kimeu

Writer, News

Feb 9, 2023 at 07:24

It was one thing after another as the crypto winter and FTX downfall swept through the industry and left a trail of destruction in its wake. 

Crypto winter and FTX shockwaves
Crypto winter and FTX shockwaves

Genesis, BlockFi, Voyageur Digital, and Celsius Network, once thriving cryptocurrency lenders and leaders in the field, have filed for bankruptcy.

Nevertheless, the storm may not have fully passed, but hope remains on the horizon as one crypto lender seems to be staging a remarkable recovery.

SALT Lending set for a comeback

SALT Lending, a trailblazer in the world of cryptocurrency lending, declared on Feb 08, 2023, that it had secured a $64.4 million funding round. 

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This investment will fortify its financial standing and rejuvenate its reserves, providing a much-needed boost. Moreover, the accredited investors will receive a slice of the company’s coveted preferred stock. 

Although regulatory approval is still pending for this Series A revitalization initiative, it is expected to pave the way for SALT Lending to make a triumphant return to full operations sometime in Q1 2023. 

Almost went bankrupt

SALT Lending, a Denver-based company, caused a stir in November 2022 when it revealed that it was putting a hold on both deposits and withdrawals from its lending platform. 

In an aftermath of the FTX crash, their decision impacted several other crypto companies. Like some of its peers, SALT Lending had relied on Bahamas-based FTX for liquidity support in its lending operations.

The crypto industry was hit hard in 2022, resulting in significant casualties among key players like Terraform Labs, Voyager Digital, Celsius Network, Three Arrows Capital, and BlockFi. 

“SALT was not immune to these market forces, but we are determined to emerge stronger than ever,” Shawn Owen, SALT CEO, announced to Cointelegraph.

Shawn Owen, SALT CEO
Shawn Owen, SALT CEO

Furthermore, the freeze on withdrawals from SALT Lending in November not made headlines and sparked a storm of anger on social media. Additionally, the company also lost its lending license in California, and a highly anticipated sale to BnkToTheFuture failed to materialize.

Nevertheless, SALT Lending remains steadfast in its commitment to weathering the storm.

SALT Lending’s California license remains suspended to this day.

However, the company is collaborating with state regulators to regain the license. 

Future plans

SALT Lending has its sights set on further growth and expansion, with plans to secure more funding in 2023 through an anticipated Series B financing round in the range of $100 million.

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