Crypto Exchanges Bitfront, AAX Suspend Services Amid FTX Contagion

Crypto exchange Bitfront founded by social media giant LINE on Monday announced shutting down the crypto exchange due to facing challenges in the crypto industry. Users can withdraw their crypto assets until March 31, 2023, with new signups and credit card payments suspended immediately. Several crypto companies are facing challenges amid the FTX contagion.

Crypto Exchange Bitfront Announces Closure

In an official notice on November 28, crypto exchange Bitfront announced the need to shut down to grow the LINE blockchain ecosystem and LINK token economy.

Bitfront team claims the decision is unrelated to recent accusations of misconduct against several crypto exchanges following the collapse of FTX. It believes closing operations is in the best interest of the LINE blockchain ecosystem. However, the crypto exchange also agreed it failed to overcome challenges despite making efforts in this rapidly-evolving industry.

“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.”

Several services including new signups and credit card payments are immediately suspended. Moreover, additional deposits and interest payments of LN/LN interest products will be suspended by December 12. However, interest for deposits between December 5-11, 2022 and forced withdrawals of all deposits and interest of LN/LN interest products are applicable till December 13.

Bitfront will suspend crypto and USD deposits, trading, Open API Service, and open orders by December 30. Users are requested to withdraw all assets by March 31, 2023.

AAX Faces Liquidity Issues Amid FTX Contagion

Meanwhile, another crypto exchange AAX is also facing liquidity issues with withdrawals suspended for 15 days. In fact, the crypto exchange has reportedly deleted its official YouTube channel and Facebook account.

AAX vice-president Ben Caselin in a series of tweets on November 28 confirmed his resignation. He claims the challenges have damaged the crypto exchange and the company’s brand no longer exists. He hopes the founders and board will come up with a solution.