After more than 10 years of activity, the LiteBit cryptocurrency exchange is closing its doors due to financial difficulties. In addition, increasingly fierce competition and high regulatory costs got the better of the Rotterdam-based company. Thus, it joins the list of platforms, such as FTX and Celsius, to have stopped their activities during this bear market. What is the status of his clients’ funds?
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LiteBit exchange ceases operations
For more than a decade, the LiteBit platform has braved bear markets, faced competition between different exchanges and fought to comply with the regulations in force. However, this was not enough: the company based in the Netherlands has just announced to its customers the end of its activities.
Company announcement – LiteBit to cease operations and to set up collaboration with Bitvavo. Today our customers and partners have been informed about this next step for our organization. Please find our press release with all relevant information here: https://t.co/oowpEFxSeC
— LiteBit.eu (@litebiteu) May 23, 2023
According to the company, the closure of its services is due to financial difficulties not allowing the survival of the company in the long term. The sharp reduction in transaction costs by its competitors and the growth of regulatory costs have pushed the company into a corner.
For investors holding assets at Litebit, fear not: until August 28, 2023, the platform allows its users to withdraw their funds. According to its director of operations, Arthur van Lier, the security of the assets stored on the exchange is guaranteed for all its customers:
” LiteBit continues to ensure that all client funds are available as the safety of our users’ assets has always been our top priority. We are completely dedicated to a smooth and fast transfer of our clients’ funds. »
At the same time, the company affirms the financial and personal support of its employees. In a few months, LiteBit will close its doors permanently drawing a line under more than 10 years of service in the Netherlands, Austria and France.
This event is a reminder of the current and future challenges for Web3 professionals. Although the cryptocurrency market has recovered since January 2023, the costs associated with regulation and the general public’s lack of interest in these assets are still causing difficulties for certain companies.
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Source: Litebit
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Always enthusiastic about new technologies, I gradually moved closer to Web3-related activities during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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