Cryptocurrency exchange Bitfront is the latest victim of the crisis in the sector

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Bitfront, a cryptocurrency exchange backed by Japanese social media app Line, is shutting down after failing to weather the turmoil in the industry.

The US-based exchange’s announcement comes at a time when the digital asset market is grappling with financial contagion triggered by the spectacular collapse of another cryptocurrency exchange, FTX.

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Trading on Bitfront will be suspended until the end of the year and withdrawals on March 31, 2023, it said in a statement on its website on Monday (28).

The company said it had failed to “overcome the challenges in this rapidly evolving industry”, distancing its decision from the FTX implosion.

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“Please note that this decision is unrelated to recent issues regarding certain exchanges that have been accused of misconduct,” he added.

Line opened Bitfront in 2020. Now, it will focus on its native blockchain ecosystem and token. Its decision to shut down the exchange came on the same day that cryptocurrency lender BlockFi filed for bankruptcy.

BlockFi, founded in 2017 by Zac Prince and Flori Marquez, made loans to customers using crypto assets as collateral.

Unlike Bitfront, BlockFi’s problems were directly linked to FTX. The lender had announced earlier this month that it had halted withdrawals, citing “significant exposure” to FTX, as well as sister investment fund Alameda.

FTX, Alameda and dozens of affiliates filed for bankruptcy on Nov. 11.

Shortly after filing for Chapter 11, BlockFi filed suit against Emergent Fidelity Technologies, FTX founder Sam Bankman-Fried, demanding that he surrender the collateral BlockFi claims he is owed.

Digital currency prices plummeted. Bitcoin, the world’s largest cryptocurrency, has dropped around 65% so far this year. It was trading at around $16,490 this Tuesday (29), according to CoinDesk.

— Allison Morrow contributed to this report.

Source: CNN Brasil

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