Crypto Crash Tanks Peninsula Company

PALO ALTO, CA — The 2022 crypto crash has claimed another casualty.

Palo Alto-based BITFRONT’s announcement that it will shutter its digital currency exchange follows the spectacular collapse of FTX, Sam Bankman-Fried’s exchange that was valued at $32 billion just a view weeks ago.

BITFRONT announced the company’s closure Sunday in a news release.

In an apparent reference to the FTX debacle, BITFRONT said its decision was not related to “recent issues related to certain exchanges that have been accused of misconduct.”

BITFRONT cited the need to overcome challenges it faces in a fast-changing industry as the key factor in its decision to close shop.

The company said it was “established to enable users to safely store and freely trade their digital assets” and that “from the beginning, we have done our best to be a leader in the blockchain 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.”

The company has suspended new signups and credit payments, effective immediately, and will suspect withdrawals on March 31 of next year.

The FTX collapse comes amid a disastrous year for digital currencies.

Bitcoin, the largest digital currency, has lost two thirds of its value this year.

Kraken, another crypto exchange, on Wednesday announced plans to ax 1,100 workers, about 30 percent of its workforce, The San Francisco Chronicle reports.