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Crypto Exchange Bitfront Closes Citing Challenges, Not FTX

Crypto exchange Bitfront announced on its site that it has closed operations. Bitfront is built on Line blockchain.

In the statement, Bitfront said: “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.”

Bitfront was probably referring to the collapse of FTX (CRYPTO: FTT) and Alameda Research, leaving a shortfall of “at least $3.1 billion.” This is just the latest in networks and crypto exchanges that have suffered from exposure to FTX.

Another crypto exchange, BlockFi, announced earlier this month that it had halted withdrawals, citing “significant exposure” to FTX.

FTX filed for bankruptcy and former leader and co-founder Sam Bankman-Fried has been replaced with a new CEO, John Ray.

FTX stated that Bankman-Fried no longer speaks for the company, but this hasn’t stopped him from making many colorful statements, as in his recent Vox interview, in which he sounds a bit like a supervillain in his professed indifference.

The sinking of crypto exchanges pointed to a liquidity issue within the industry, which is still young and quite small compared to traditional finance. In such a small ecosystem, one large collapse can have a ripple effect. Now, people are wondering, “When will it end?”

Daryn Soards, co-founder and CEO of UX Network, had a perspective that was at least grounding if not comforting. He said in an interview with Benzinga, “I’d say this is the bottom. Market self-regulation. It’s the game changer. Look at any financial market over history. This will kill off the weak.”

According to its website, Bitfront formerly served “as the main exchange platform for the core products in Line’s blockchain business.” According to the company's statement, withdrawals can continue to be made until March 31, 2023, at 05:00 (UTC).

Read Next: Sam Bankman-Fried, You Are Invited To Speak At Benzinga's Future Of Crypto on Dec. 7

CLICK HERE to sign up for Benzinga's Future of Crypto conference on Dec. 7 in New York City. This is the BIGGEST day of the year for crypto enthusiasts, entrepreneurs, investors and networkers to discover the #1 crypto ideas you can use today — directly from hundreds of industry insiders and dozens of project creators.

Photo: Shutterstock

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