Crypto exchange Bitfront shuts down

Nov 28 (Reuters) – Bitfront, a U.S. crypto exchange backed by Japanese social media firm Line Corp, said it had suspended new signups and credit card payments and would cease trading in a few months despite efforts to overcome the challenges of the rapidly changing industry.

“However, despite our best efforts … we have reluctantly determined that we must shut down BITFRONT in order to continue to grow the LINE blockchain ecosystem and the LINK token economy,” the California-based company said in a statement on its website on Sunday.

Bitfront said the move is unrelated to recent issues with some crypto exchanges that have been accused of “misconduct”.

FTX, which was one of the largest cryptocurrency exchanges in the world, is now under investigation by authorities for “criminal misconduct”.

The company had filed for bankruptcy earlier this month, while cryptocurrency lender BlockFi filed for Chapter 11 bankruptcy on Monday, hurt by exposure to FTX’s collapse.

Bitfront said it suspended new registrations and credit card payments effective November 28 and suspended withdrawals on March 31, 2023. The company clarified that interest for deposits made between December 5 and December 11 will be paid on December 13, 2022.

Reporting by Rahat Sandhu and Maria Ponnezhath in Bengaluru; Editing by Sherry Jacob-Phillips

Our standards: The Thomson Reuters Trust Principles.

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