Line has announced the closure of its crypto exchange platform Bitfront as the Japanese messaging app looks to sustain its business amid challenges in the broader crypto industry.
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However, Bitfront stressed that the move is unrelated to “recent issues related to certain exchanges that have been accused of misconduct.”
Line said it will continue operating other blockchain ventures, including the Line blockchain ecosystem and Link (LN) token.
Bitfront has suspended new signups and credit card payments as of today and will stop receiving additional deposits and interest payments for its interest products from December 12.
The platform will also suspend all withdrawals by March 31, 2023. After the set date, its US customers can claim their assets in each of their states, while global customers can do so in Delaware, US.
See also: Singaporeans feel ‘betrayed’ by Temasek-backed FTX
Launched in February 2020 as Bitbox, the company supports trades for major cryptocurrencies Bitcoin and Ethereum as well as Link, Line’s blockchain mainnet token, in US dollar fiat markets.
The shutdown of Bitfront follows the market instability and liquidity issues sparked by the fallout from the FTX crash in early November. Due to exposure to FTX and the market liquidity crisis, services and businesses were driven to the verge of bankruptcy.
Editing by Miguel Cordon and Eileen C. Ang
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