SNEAK PEEK
- A Japanese social media business called Line Corp. funded US bitcoin exchange Bitfront, which has since suspended operations.
- Bitfront asserted that the action was unrelated to ongoing legal challenges involving certain cryptocurrency exchanges that have been accused of “misconduct.”
- Bitfront services have been suspended as a result since November 28.
Despite attempts to overcome difficulties in the quickly developing business, Bitfront, a U.S. cryptocurrency exchange sponsored by Japanese social media company Line Corp, announced it has ceased new sign-ups and credit card payments and would shut down operations in a few months.
The California-based firm stated in a post on its website on Sunday that “despite our efforts,”
we have sadly realized that we need to shut down BITFRONT to continue building the LINE blockchain ecosystem and LINK token economy.
Bitfront claimed the action had nothing to do with current disputes involving certain cryptocurrency exchanges that have been accused of “misconduct.” Authorities are currently looking into FTX, one of the biggest bitcoin exchanges in the world, for “criminal misbehavior.”
The company had declared bankruptcy earlier this month, and on Monday, cryptocurrency lender BlockFi, which had been adversely affected by exposure to FTX’s demise, filed for Chapter 11 bankruptcy protection.
The collapse of the Terra sisters in May, followed by the liquidation of Three Capital Arrows, caused an illiquidity crisis that is currently affecting the cryptocurrency market. The Terra crisis destroyed billions of dollars worth of value, leading numerous cryptocurrency exchanges to suspend operations and ultimately decide to file for bankruptcy.
Sam Bankman-FTX Fried’s Group, which has filed for voluntary bankruptcy and exposed numerous other exchanges along with it, is the most recent case to startle cryptocurrency investors. Since May, the cryptocurrency markets have become incredibly turbulent.
In light of this, Bitfront services have been suspended since November 28. The exchange does, however, intend to remove its services by March 31, 2022.
The notification states that beginning on November 28, Bitfront would no longer accept new signups or credit card payments. Due to the operation of LN/LN interest products coming to an end on December 12, it will stop accepting new deposits and paying interest on LN/LN interest products.
