Bitfront, a U.S. cryptocurrency exchange supported by Japanese social media company Line Corp, has halted new sign-ups and credit card transactions, announcing that it will cease operations in a couple of months, despite efforts to overcome the obstacles in the rapidly evolving industry.
“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,” the California-based company revealed in a statement posted on its official website on Monday.
Bitfront clarifies that the company’s closure is in no way related to the recent news of the shutdown of blockchain companies due to mismanagement of funds and other administrative misconduct. FTX is one of those blockchain companies that piqued people’s interest when it announced its sudden closure, as it became the target of ridicule, insult, frustration, and government investigations for “criminal misconduct.”
Although Bitfront has distanced itself from the FTX saga, cryptocurrency lender BlockFi filed for Chapter 11 bankruptcy protection on Monday, affected deeply by the revelation of FTX’s unprecedented meltdown.
Further details about Bitfront’s shutdown
All trading on Bitfront will be suspended by the end of the year, and withdrawals will be stopped on March 31, 2023, it said in a statement on its website Monday.
Bitfront reveals that it had stopped new-sign ups and credit card payments as of the 28th of November. The company explained that interest for deposits processed between Dec. 5 and Dec.11 would be released on the 13th of December, 2022.
The statement also says that “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. However, information necessary for compliance with legal requirements/fulfilment of reporting obligations/responding to disputes may be retained even after service termination.
On the rights of customers, the statement discloses that “even if the service is terminated, the customer’s right to their personal information remains valid as long as the personal information is stored. However, if there are statutory requirements, the fulfilment of legal obligations of LVC USA Inc. may take precedence over the exercise of rights by customers.”
As for the safe management of personal information, the statement says that “Even after the service is terminated, the personal information required to be retained will be safely stored, and when the retention period ends, all personal information will be deleted to an irreversible level. “
The crypto sector seems to be heading towards one of its worst records since its subtle nudge in 2009.
Bitfront is one of those companies exiting the cryptocurrency ecosystem following the unending bearish pulls of the market. Due to liquidity issues, Bitfront has announced its sudden closure—depressing news as it is not heartwarming when a cryptocurrency company goes into extinction.
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