With the cryptocurrency market in turmoil, several cryptocurrency exchanges are failing to survive the rush of withdrawals and user distrust.
The collapse of FTX, until then the world’s third largest by volume traded, sent investors rushing to withdraw funds from other platforms that could be insolvent. This caused several companies to be unmasked, resulting in their bankruptcy.
Now, yet another broker has announced that it will shut down, giving users four months to withdraw their funds.
In an official statement, the exchange apologized to everyone who used its services and said that the decision was made in the best interest of the LINE blockchain ecosystem.
The company also said that its bankruptcy has nothing to do with “recent issues relating to certain brokerages that have been accused of misconduct”, which suggests that its bankruptcy is unrelated to the demise of FTX.
Check out the statement:
“The exchange was created to allow users to freely store and trade their digital assets securely. And from the beginning, we have done our best to be a leader in the blockchain industry.
However, despite our efforts to overcome the challenges in this rapidly evolving industry, we have unfortunately determined that we need to shut down the platform in order to continue to grow the LINE blockchain ecosystem and LINK token economy.
Please note that this decision was made in the best interest of the LINE blockchain ecosystem and is unrelated to recent issues relating to certain exchanges that have been accused of misconduct.”
User data will be deleted
Called Bitfront, the cryptocurrency exchange backed by LINE, East Asia’s largest social media company, has decided to shut down its operations. The company said this Monday (28) that it has already suspended new user registrations and credit card payments.
LINE is a subsidiary of Z Holdings, which is owned by Japanese conglomerate SoftBank and South Korean internet giant Naver.
Line created a cryptocurrency exchange called Bitbox in Singapore in July 2018, but closed the company in March 2020 and created Bitfront in the United States, where it failed to gain market share.
According to a statement, dCrypto and USD deposits, trading and canceling open orders will be suspended on December 30.
Users can withdraw assets until March 31, 2023, When the platform will go offline and user information will be deleted.
“When the retention period ends, all personal information will be irreversibly deleted. We sincerely appreciate your support of BITFRONT. We will notify you if further changes occur.”