US-based crypto exchange BITFRONT announces closure

BITFRONT, the crypto exchange based out of Palo Alto, California, has announced that it will cease all operations towards the end of the year. The exchange was initially launched as BITBOX in Singapore back in 2018, before rebranding and moving its headquarters to the United States in 2020. 

BITFRONT to initiate full closure in March 2023

As per BITFRONT’s official statement, the challenges presented by the “rapidly evolving” crypto industry forced the exchange to shut down. The statement further read,

“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.” 

The exchange also published a timeline of events leading up to the final shutdown. New sign-ups and credit card payments have been suspended starting 28 November. By 12 December, the exchange will bar all additional deposits and interest payments of their native token, LINK (LN). 

BITFRONT has clarified that interest for deposits made between 5 December 2022 and 11 December 2022 will be paid out on 12 December. That day will also see the forced withdrawals of all deposits and interest of LN and LN interest products. 

All withdrawals will be suspended by 31 March 2023, and all personal information collected from the exchange’s clients will be deleted within the following 40 days. 

In the interest of LINE blockchain ecosystem

Japan-based Line Corporation is the parent firm of BITFRONT and is also the firm behind the LINE blockchain ecosystem. In its statement, BITFRONT confirmed that the suspension was made in order to foster the growth of this blockchain and the LINK token economy. 

“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.”

Data from CoinMarketCap showed that LN, at press time, was trading at $26.33. The token had a market capitalization of $166 million, and its trading volume over the past 24 hours came in at $5.8 million.