Crypto exchange Bitfront is shutting down! The exchange has set March 31, 2023, as the deadline to clear all the deposits and withdrawals of investors. The current challenging market pushed Bitfront into making a choice. They chose to close their services in order to continue growing the LINE blockchain ecosystem and LINK token economy. Bitfront is backed by Japan-based LINE Corporation. Bitfront is facing its downfall less than 3 years of its launch.
In a notification, Bitfront said, “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.”
Currently, crypto market struggles with the illiquidity crunch which began from the Terra sisters’ collapse in May, followed by liquidation of Three Capital Arrows. Terra’s crisis wiped out billions of dollars of wealth, forcing many crypto exchanges to halt their services and eventually opt for bankruptcy. The latest case to send shockwaves across crypto investors would be Sam Bankman-Fried’s FTX Group which has filed for voluntary bankruptcy — exposing many other exchanges along with it. The crypto markets have turned extremely volatile since May.
Bitfront said, “from the beginning, we have done our best to be a leader in the blockchain industry.”
The exchange was launched in February 2020, to enable users to safely store and freely trade their digital assets.
Bitfront reteriated 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.”
Hence, Bitfront services have already closed since November 28. However, the exchange plans to clear its services by end of March 31, 2022.
According to the notice, Bitfront has suspended new signups and credit card payments effective from November 28. While it will suspend additional deposits and interest payments of LN/LN interest products due to the end of LN/LN interest product operations on December 12.
Further, the exchange said that interest for deposits made will be paid from December 5th to 11th, while forced withdrawals of all deposits and interest of LN/LN interest products will be done by December 13. An investor can check the paid interest on the “History” tab even after the product operation ends.
Meanwhile, by December 30, the exchange will suspend crypto, and USD deposits, along with trade suspension and open API services. Also, cancellation of open orders.
But by March 31, 2023, Bitfront plans to suspend withdrawals. The exchange announced that withdrawals can continue to be made until March 31, 2023 at 05:00 (UTC). Thereby, it has requested investors to withdraw all their assets by then.
However, after March 31, the exchange announced that US customers can claim their assets in each of their states. Also, global customers can claim their assets in the state of Delaware.
It said, “All personal information collected from BITFRONT customers will be deleted within 40 days of March 31, 2023, when the ability to make withdrawals will end,” adding, “however, information necessary for compliance with legal requirements / fulfillment of reporting obligations / responding to disputes may be retained even after service termination.”
Bitfront’s notice said, “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.”
Bitfront served as the main exchange platform for the core products in LINE’s blockchain business. Driven by a contribution-rewarded business model, Bitfront was the exclusive platform for listing digital tokens based on the LINE Blockchain Platform and for trading LINE’s digital tokens with other major tokens.
The exchange is operated by LVC USA Inc, which is a subsidiary of a publicly listed internet company, LINE Corporation. LINK is the LINE Token Economy’s key cryptocurrency.
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