The Bitcoin exchange, founded by social media giant LINE on Monday, announced that it was closing due to difficulties experienced. The Bitcoin exchange informed its users that they can withdraw their cryptocurrencies until March 31, 2023, if they are immediately suspended on new registrations and payments. Several crypto companies are facing challenges in the wake of the FTX crisis.
Bitcoin exchange Bitfront announces shutdown
In the official statement released on November 28, Bitcoin exchange Bitfront made a statement. He states that shutdown is essential to grow the LINE blockchain ecosystem and the LINK token economy. The Bitfront team claims that the decision has nothing to do with what happened after the FTX crisis.
In addition, shutdowns are considered to be in the interest of the LINE blockchain ecosystem. However, the Bitcoin exchange also admits that it has not been able to overcome the challenges within this rapidly evolving industry.
BITFRONT was created to enable users to securely store and freely trade cryptocurrencies. Since the first day of its establishment, we have tried our best to be a leader in the blockchain industry.
In addition, the following statements were made by the exchange:
Various services were suspended immediately, including new signups and credit card payments. In addition, additional deposit and yield payments of LN/LN products will be suspended until 12 December. However, the deposit interests between December 5 and December 11, 2022 and the mandatory withdrawal of all deposits and the gains of LN/LN yield products are valid until December.
Bitfront will suspend cryptocurrency and USD deposits, trading, Open API Service and open orders until December 30. It requires users to withdraw all cryptocurrencies by March 31, 2023.
AAX faces liquidity question after FTX
Apart from that, Bitcoin exchange AAX is also facing liquidity problems. The exchange reports that it has suspended withdrawals for 15 days. The exchange has reportedly deleted its official YouTube channel and Facebook account. Ben Caselin, AAX’s vice president of communications, confirmed his resignation on November 28.
He explained that what happened damaged the Bitcoin stock market. He also said that the brand no longer exists. In addition, Caselin believes that the founders and the board will find a solution.
Dear all, it’s true I have resigned from AAX. I did fight for the community but none of the initiatives we came up with were accepted. Any role I had left for communication became hollow.
1/4
— ₿en Caselin HODL (@BenCaselin) November 28, 2022
It needed to continue to grow the LINE blockchain ecosystem and the LINK token economy. The BITFRONT team explained that the decision was made in the best interest of the LINE blockchain ecosystem. He also stressed that it is not related to recent issues with certain exchanges accused of misconduct. FTX’s bankruptcy in November and the potentially criminal misconduct surrounding Bahamian authorities’ comments led to an investigation.
Bitfront, the cryptocurrency exchange founded by LINE, one of the largest social media in East Asia, announced its closure. After March 31, 2023, the withdrawal of coins will stop and user information will be deleted. https://t.co/PX059C6ofJ
— Wu Blockchain (@WuBlockchain) November 28, 2022
Launched in February 2020, BITFRONT is a global cryptocurrency exchange that trades LINE’s major cryptocurrencies Bitcoin and Ethereum, as well as LINE’s blockchain mainnet token, LINK, on the US dollar fiat markets. BITFRONT was previously known as BITBOX. Until the announcement, BITFRONT is owned by LVC USA Inc., a subsidiary of LINE Corporation, one of East Asia’s largest social media platforms. was operated by
