Bitfront is the latest ailing crypto exchange to shutter following FTX's collapse

• Crypto exchange Bitfront has shut down, citing "challenges in the rapidly-evolving industry."
• Bitfront says its closure is unrelated to "certain exchanges that have been accused of misconduct."

Bitfront, the cryptocurrency exchange started by Tokyo-based social media giant LINE Corp., is shutting down, as casualties mount amid massive volatility in the digital assets sector.

"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," according to an announcement.

Customers will have until March 31 to withdraw funds, the company said, but new sign-ups and credit card payments were halted immediately on Monday. Bitfront is shuttering its services only three years after its launch, but says it will pivot its focus on its other blockchain ventures. In 2021, the exchange halted operations in South Korea due to regulatory concerns.

The news comes as crypto markets endure months of turmoil, starting with widespread contagion from the downfall of algorithmic stablecoin TerraUSD and now-defunct overleveraged hedge fund Three Arrows Capital earlier this year. Crypto markets were sent reeling again this month, when FTX, the crypto empire founded by Sam Bankman-Fried, quickly imploded, sparking widespread contagion across the market. Major centralized lender BlockFi filed for Chapter 11 bankruptcy protection on Monday after having "significant exposure" to FTX.

Bitfront, however, says its closure is unrelated to "certain exchanges that have been accused of misconduct."

Crypto has lost more than two-thirds of its market value since record highs reached in November 2021, according to data from Messari on Tuesday, with bitcoin and ethereum falling over 75% in that period.

LINE did not immediately respond to Insider's request for comment.