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After FTX, Bitfront shuts shop as cryptocurrency industry is in the midst of a crash

Bitfront, a US-based crypto exchange backed by Japanese social media firm Line Corp, announced its intention to cease its operation amid the turmoil in the next few months. The company has already suspended new sign-ups and credit card payments. 

“However, despite our efforts … we have regretfully determined that we need to shut down BITFRONT to continue growing the LINE blockchain ecosystem and LINK token economy,” Bitfront said in a statement on its website.

The company also clarified that the move is unrelated to recent issues related to certain exchanges accused of misconduct.

On its official website, the crypto exchange said it has suspended new sign-ups and credit card payments as of November 28 and will suspend withdrawals on March 31, 2023. 

Bitfront also clarified that interest for deposits made between December 5 and December 11 would be paid out on December 13, 2022.

Crypto in midst of crash

The cryptocurrency industry is in the midst of a crash. Prices have plummeted, and investors are scrambling to salvage their losses. It is a far cry from the optimistic days of 2017 when Bitcoin reached an all-time high of nearly $20,000.

Bitcoin, the largest and most well-known cryptocurrency, is down over 60% from its all-time high just a few months ago. Likewise, Ethereum, the second-largest cryptocurrency by market capitalisation, is down over 70%.

A few days back, a New Jersey-based cryptocurrency lender BockFi filed for Chapter 11 bankruptcy protection due to its substantial exposure to FTX, creating a liquidity crisis. According to the company, BlockFi said the Chapter 11 cases will enable the company to stabilize its business and maximize value for all stakeholders.

In November, FTX, the world’s second-largest cryptocurrency exchange, filed for Chapter 11 bankruptcy in the US, taking its CEO, Sam Bankman-Fried (SBF), net worth from $16B to zero. 

What went wrong? And what does this mean for the future of cryptocurrency? Do let us know in the comments section. 

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