No more new customers: Crypto exchange BITFRONT pulls the plug: Another victim in the crypto winter after the FTX debacle? | news

• FTX crash sweeps through the crypto sector
• BITFRONT sets the trading platform
• Blockchain projects must be further developed

FTX collapse puts pressure on crypto sector

The crypto market has been under significant pressure in recent months. First the crash of the Terra/LUNA stablecoin caused a loss of confidence among investors, then crypto lending services Celsius and Voyager Digital filed for bankruptcy. The next bad news followed in November: after doubts arose about the capital reserves of the popular crypto exchange FTX, clients withdrew from the trading platform for Bitcoin, Ether & Co. billions in capital, causing stage star Sam Bankman-Fried’s company to run into payment difficulties. Rival Binance initially announced it wanted to take over the ailing competitor, but then backed out of the deal. As a result, FTX had to file for Chapter 11 bankruptcy in the United States, and Bankman-Fried resigned from his position as a company director.

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BlockFi is also filing for bankruptcy

The tremors that triggered the FTX bankruptcy in the crypto market are now reaching other companies in the industry. In late November, lender BlockFi announced it would also file for Chapter 11 restructuring. The provider was already under pressure from the Terra/LUNA debacle and received a cash injection from FTX. Bankman-Fried also promised the company a $400 million line of credit that would give FTX the right to acquire BlockFi for a purchase price of up to $240 million. With FTX’s bankruptcy, BlockFi should no longer receive financial support. “Due to the lack of clarity regarding the status of FTX.com, FTX US and Alameda, we are unable to continue operations as before,” the provider wrote in a Twitter post.

BITFRONT closes trading platform

Another shaky contender in the crypto sector: crypto exchange BITFRONT. The trading platform was first launched in 2020 by the Japanese group LINE, which is also behind the instant messaging service of the same name. A high degree of security against cyber attacks was announced, as the majority of cryptocurrencies offered for trading are stored offline. Nevertheless, a large amount of coins are available for instant withdrawal. The platform is also easy to use and works reliably, according to the company. With the LINK, the company has also developed its own token, which is considered a key currency in LINE’s blockchain efforts and has so far been used on BITFRONT to process trading fees. In addition to your own cryptocurrency, popular coins such as Bitcoin, Ether and Litecoin can also be traded in the application.

Withdrawals are still possible until March 2023

A few days ago, BITFRONT announced that it would have to discontinue its services. “BITFRONT was founded to enable users to securely store and freely trade their digital assets,” the company wrote in a statement. “However, despite our efforts to overcome the challenges of this rapidly evolving industry, we have regrettably decided to close BITFRONT in order to continue growing the LINE blockchain ecosystem and the LINK token economy.” From November 28, 2022, no new customers will be accepted and no more credit card payments can be made. Further deposits and interest payments will also be suspended from 12 December, the announcement states. From 13 December, customers will then be paid out any remaining deposits before all trading is stopped on 30 December. Until 31 March 2023, users of the service must still be able to withdraw their open deposits.

FTX bankruptcy not a triggering factor

However, as the company emphasized in the announcement, the reason for the closure of the exchange is not the cryptoquake triggered by the FTX bankruptcy. “Please note that this decision was made in the best interest of the LINE blockchain ecosystem and is not related to recent issues surrounding certain exchanges that have been accused of wrongdoing,” the company told BITFRONT’s clients about Bankman-Fried’s situation. bankrupt rival.

In addition, they do not want to completely withdraw from the crypto sector, but instead focus on LINE’s blockchain projects. The technology will continue to be used in the Japanese company’s payment and shopping services. In addition, the group operates a crypto exchange, LINE BITMAX, which is exclusively aimed at the Japanese market. Nothing is currently known about a possible closure.

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