Bitfront – a cryptocurrency platform operated by internet company LINE Corporation – announced it will cease its services as of March 31, 2023.
The entity asserted that its decision is not related to the recent collapse of FTX.
- The US-based exchange Bitfront informed its customers they should withdraw their assets by the end of March 2023 as it will halt all services and delete their information after that date.
- It has already suspended new registrations and credit card payments, while trading will continue until the end of 2022.
- LINE Corporation – a Japanese internet giant that manages Bitfront – said the closure will allow the company to develop its own blockchain ecosystem.
- It also said the shutdown has no relation to “certain exchanges that have been accused of misconduct.”
- The notorious crash of FTX is a prime example of an industry participant that triggered a wave of criticism. It filed for a voluntary Chapter 11 Bankruptcy at the beginning of November after failing to honor customer withdrawals and revealing severe liquidity issues.
- The collapse caused colossal investor losses, while rumors hinted that some of FTX’s executives, including Sam Bankman-Fried, had committed serious fraud and failed to operate the platform adequately.
- The prolonged bear market has disrupted the operations of numerous cryptocurrency exchanges, and some had to reduce the size of their teams.
- Some examples include giants in the field, such as Coinbase, CryptoCom, Gemini, Bybit, Huobi, and BlockchainCom.
- Other entities like the crypto lending platform Celsius and the hedge fund manager Three Arrows Capital (3AC) took a major punch and had to file for bankruptcy.