Bitfront To Close Down, In Latest Crypto Failure

Closed - Shutterstock - © Pitamaha

Latest casualty. Crypto exchange Bitfront confirms it is shutting down amid challenging crypto market, despite best efforts

Crypto exchange Bitfront confirmed on Monday it is closing down, but insisted that its decision is “unrelated” to recent issues at other crypto exchanges.

In a statement on website on Monday, Bitfront announced a phased closure of the crypto exchange that was backed by Japan’s internet giant Line Corp.

Bitfront closure comes after New Jersey-based Cryptocurrency lender BlockFi on Monday filed for Chapter 11 bankruptcy protection.

Bitfront closing

BlockFi admitted that it had been hurt by exposure to the spectacular collapse of the FTX exchange earlier this month.

The collapse of FTX, which is under ‘active’ investigation in Bahamas where it is headquartered, has resulted in regulators seizing nearly a half-billion dollars in assets from the firm.

Celsius Network and Voyager Digital, filed for bankruptcy in July, citing extreme market conditions that had led to losses at both companies.

However California-based Bitfront in its statement was quick to distance itself from other closures.

Bitfront said it had been established to enable users to safely store and freely trade their digital assets add, from the beginning, it have done its best to be a leader in the blockchain industry.

“However, despite our efforts to overcome the challenges in this rapidly-evolving industry, 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 firm stated.

“Please note that this decision was made for the best interest of the Line blockchain ecosystem and is unrelated to recent issues related to certain exchanges that have been accused of misconduct,” it added.

Phased closure

Bitfront said it was carrying out a phased closure.

It has suspended new sign-ups and credit card payments, and will suspend crypto, USD deposits on 30 December.

It said it will suspend withdrawals in a few months time (31 March 2023).

“We wish to express our gratitude and apologies to all those who used our Bitfront services and shared their voice in the development of Bitfront,” it said.

The collapse and clsoures of crypto exchanges and lenders comes amid an ongoing crash of crypto prices as well.

For example the price of Bitcoin, the most popular digital currency by far, is down more than 70 percent from a 2021 peak.