Bitfront has become the latest crypto exchange to close in the wake of shockwaves rocking the sector after the stunning FTX collapse earlier in November.
A US crypto exchange backed by Japanese social media firm Line Corp, Bifront said it had sought to overcome challenges in the sector, but failed and had suspended new sign-ups and credit card payments and will cease operations in a few months.
“However, despite our efforts … we have regretfully determined that we need to shut down BITFRONT in order to continue growing the LINE blockchain ecosystem and LINK token economy,” the California-based company said in a statement on its website.
Bitfront said the move is unrelated to recent issues among certain crypto exchanges that have been accused of “misconduct”.
FTX, which was among the world’s largest cryptocurrency exchanges, is now the subject of investigations by authorities for “criminal misconduct”.
The company had filed for bankruptcy earlier this month, while cryptocurrency lender BlockFi filed for Chapter 11 bankruptcy protection on Monday, hurt by exposure to the collapse of FTX.
Bitfront said it has suspended new sign-ups and credit card payments as of November 28, and will suspend withdrawals on March 31, 2023.
The company clarified that interest for deposits made between December 5 and 11 will be paid out on December 13, 2022.
- Reuters with additional editing by Jim Pollard