Bybit Co-Founder's US Crypto Exchange ABFinance Suspends Operations Amid Regulatory Challenges

ABFinance, a US-based cryptocurrency exchange founded by Helen Liu, former co-CEO of Bybit, has suspended operations. The exchange cited challenging regulatory and market conditions as the reason for the halt.

Liu revealed plans for ABFinance in March on X, stating that the new venture had obtained a license aligned with US regulatory requirements. This was seen as a notable move given Liu's experience and growing demand for regulated crypto services in the US.

The suspension reflects broader trends in the US crypto industry, where regulatory uncertainty, compliance costs, and shifting market landscapes have led several exchanges to reassess operations. The SEC's aggressive enforcement actions and collapse of major players like FTX have heightened the bar for regulatory compliance, making it difficult for smaller or newer entrants to sustain operations.

Users of ABFinance are advised to withdraw their funds, though the company has not disclosed an exact timeline for the process. This underscores the volatility and risk inherent in the crypto exchange sector, even for platforms claiming full regulatory compliance.