Crypto exchange Bitfront shuts down as investors withdraw their coins from exchanges
Daniel Levi
Posted On November 29, 2022
Crypto winter has claimed another casualty. Crypto exchange Bitfront is another crypto exchange to bite the dust just a day after crypto lender BlockFi filed for Chapter 11 bankruptcy.
Bitfront, a California-based crypto exchange startup backed by Japanese social media firm Line Corp, announced it will cease operations in a few months after its efforts to overcome challenges in the rapidly evolving industry failed, Reuters reported. The company has also suspended new sign-ups and credit card payments.
In a statement on its website, the company said:
“However, despite our efforts … we have regretfully determined that we need to shut down BITFRONT in order to continue growing the LINE blockchain ecosystem and LINK token economy.”
Bitfront said the shutdown is unrelated to the ongoing issues among certain crypto exchanges that have been accused of “misconduct.”
“Please note that 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.”
The company said it has suspended new sign-ups and credit card payments as of Nov. 28 and will suspend withdrawals on March 31, 2023.
Founded a few years ago, Bitfront provides currency exchange, cryptocurrency, interest-bearing products, and wallet services.
The fallout of FTX has caused crypto investors to lose trust in exchanges. As exchanges failed to reassure jittery customers with a “proof of reserves” audit, many have moved their digital assets from exchanges into safer cold wallets. Even Elon Musk weighed on the issue. Early this month, he urged investors to get out of crypto exchanges and keep their cryptos in cold wallets. “Not your keys, not your coins,” Musk said.
Meanwhile, bankrupt FTX is now the subject of investigations by Bahamas and US authorities for “criminal misconduct.” BlockFi and Voyager Digital are two other crypto exchanges that recently filed for bankruptcy as crypto companies caught in the financial entanglement with the now-bankrupt FTX.
You can read the entire text below.
BITFRONT was established to enable users to safely store and freely trade their digital assets.
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 regretfully determined that we need to shut down BITFRONT in order to continue growing the LINE blockchain ecosystem and LINK token economy.
* Please note that 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.Therefore, the BITFRONT service has been closed (as of the upload of this notice).
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.
Please refer to the following actions and schedules related to the closing of BITFRONT services.
Nov. 28, 2022 at 05:00 (UTC)
– Suspension of new signups
– Suspension of credit card payments
Dec. 12, 2022 at 00:10 (UTC)
– Suspension of additional deposits and interest payments of LN/LN interest products due to the end of LN/LN interest product operations
Dec. 13, 2022
– Interest for deposits made from Dec. 5, 2022 to Dec. 11, 2022 will be paid
– Forced withdrawals of all deposits and interest of LN/LN interest products
(You can check the paid interest on the “History” tab even after the product operation ends.)
Dec. 30, 2022 at 05:00 (UTC)
– Suspension of crypto, USD deposits
– Trade suspension
– Suspension of Open API Service
– Cancellation of open orders
March 31, 2023 at 05:00 (UTC)
-Suspension of withdrawals
After March 31, 2023 at 05:00 (UTC)
– US customers can claim their assets in each of their states
– Global customers can claim their assets in the state of Delaware
* Withdrawals can continue to be made until March 31, 2023 at 05:00 (UTC). Please withdraw all of your assets by then.
* We will notify corporate customers through a separate channel.
* Please check the follow-up measures and schedules for reference in managing your assets.
[Customer guide for the deletion of personal information and compliance with statutory obligations]
1. LVC USA Inc.’s Privacy Policy
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 / fulfillment of reporting obligations / responding to disputes may be retained even after service termination.
2. Rights of Customers
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 fulfillment of legal obligations of LVC USA Inc. may take precedence over the exercise of rights by customers.
3. Safe management of personal information
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.
We sincerely thank you for your support of BITFRONT.
We will notify you should additional changes occur.
Thank you.
Connecting global crypto trades,
BITFRONT Team
