Unrelated to FTX Bankruptcy, Bitfront Forced to Stop Operations for Several Months

Bitfront is temporarily closed. (photo: Twitter @bitfront_global)

JAKARTA - Bitfront, a US crypto exchange backed by Japanese social media company Line Corp, said it has suspended new registrations and credit card payments. They will also cease operations in a few months despite efforts to overcome challenges in a rapidly growing industry.

“However, despite our efforts, we regretfully decide that we need to close BITFRONT to continue developing the LINE blockchain ecosystem and the LINK token economy,” the California-based company said in a statement on its website on Sunday, November 27.

According to a Reuters report, Bitfront said the move was unrelated to recent troubles among certain crypto exchanges that were accused of "misconduct".

FTX, which is one of the largest cryptocurrency exchanges in the world, is now the subject of an investigation by authorities for "criminal misconduct".

The Sam Bankman-Fried company filed for bankruptcy earlier this month, while cryptocurrency lender BlockFi also filed for Chapter 11 bankruptcy protection on Monday, November 28 due to being hurt by exposure to the FTX collapse.

Bitfront said it had suspended new registrations and credit card payments on November 28, and will suspend withdrawals on March 31, 2023. The company clarified that interest for deposits made between December 5 and December 11 will be paid on December 13, 2022.