Belgian Crypto Platform Bit4You Suspends Operations After CoinLoan Halts Activity28. April 2023
Bit4You Suspends Operations After CoinLoan Halts Activity
- Belgian cryptocurrency trading platform Bit4You has suspended all operations, including withdrawals, amid an insolvency investigation of one of its key partners.
- Estonian regulatory authorities issued a stop order on April 24 prohibiting CoinLoan from processing or releasing assets without the expressed consent of an appointed “temporary insolvency practitioner.”
- Bit4You claims that as of April 26 it has “no indication that virtual currencies held on behalf of our customers with CoinLoan will not be recoverable.”
CoinLoan’s Insolvency Investigation by Estonian Regulators
Belgian cryptocurrency trading platform Bit4You suspended operations on April 26th due to an insolvency investigation by Estonian regulators into one of its key partners, CoinLoan. The company explained in a blog post that this was a necessary action to protect platform users and cited regulation against CoinLoan, a partnering cryptocurrency loan service based in Estonia.
Estonian regulatory authorities had issued a stop order on April 24th which prohibited CoinLoan from processing or releasing assets without the expressed consent of an appointed “temporary insolvency practitioner.” This prevented the platform from moving, releasing, or disposing of assets or otherwise processing transactions without such permission.
CoinLoan Believes It Has Ability To Meet Obligations
Bit4You claims as of April 26th that it has “no indication that virtual currencies held on behalf of our customers with CoinLoan will not be recoverable.” A blog post from CoinLoan states that the company believes it has the capability to meet its obligations and that the actions taken by Estonian court were unexpected and would have immediate effect.
Assets Frozen Due To Suspension Order
Amongst the list of user and company assets locked up in the suspension order is more than 145 Bitcoin (BTC), worth in excess of $4 million at the time this article was published. This represents more than 81% of Bit4You’s total BTC assets, along with 638,630 Ethereum (ETH) tokens frozen in their wallets as well.