Crypto Exchange Bitfront Shuts Down Amid Industry Challenges – Bitfront, a crypto exchange operating in the United States, has suspended new sign-ups and credit card payments and plans to cease operations within a few months. Despite efforts to overcome the existing obstacles in the “rapidly evolving” crypto industry, the corporation has made this decision, as reported by Reuters and Bloomberg.
The exchange claimed in a statement published on its website that it “regretfully determined that we need to shut down Bitfront in order to continue growing the Line blockchain ecosystem and Link token economy.” The 2020-launched platform in the United States is supported by the Japanese social media company Line Corp.
Bitfront also emphasized that the decision to shut down is unrelated to the problems of “certain exchanges that have been accused of misconduct,” an indirect reference to FTX, one of the largest global players in the market prior to its collapse and bankruptcy filing on November 11 due to liquidity issues.
People Also Read: Japanese Regulator Slaps FTX Japan With Business Suspension Order
Other companies in the industry, such as Blockfi, have been affected by FTX exposure. The cryptocurrency lender said on Monday that it and eight of its affiliates have filed for Chapter 11 bankruptcy protection. Blockfi halted withdrawals at the beginning of this month, citing the “lack of clarity” on the state of FTX at the time.
With a 24-hour volume of less than $94 million, only a dozen trading pairs, and six coins, according to Coingecko, Bitfront has a small share of a market with a total 24-hour trading volume of about $57 billion, according to a report by Bloomberg.
The exchange warned users that new sign-ups and card payments have been blocked since November 28, while cryptocurrency and U.S. dollar deposits will cease on December 30. In addition, customers were asked to withdraw all of their assets by March 31, 2023, when withdrawals will also be suspended.
READ MORE
Crypto Financial Services Firm Matrixport Seeks $100 Million in Funding
Latam Based Cryptocurrency Exchange Ripio Expands to US
New York Governor Signs Law Partially Banning Bitcoin Mining on Fossil Fuels
