March 4, 2024

Belgian cryptocurrency exchange Bit4You has suspended operations after discovering that one of its service providers, CoinLoan, has been declared bankrupt by an Estonian court.

CoinLoan goes bankrupt

The cryptocurrency trading platform learned of CoinLoan’s insolvency issues on April 24. According to a blog post published by the cryptocurrency lender, it learned that CoinLoan no longer has the necessary registration to qualify as a digital asset custodian. Bowen said,

“We would like to inform you that we have recently learned that one of our main service providers, Estonia-based CoinLoan, is no longer required to register as a virtual currency custodian. Immediately following this, we took several steps to understand this the nature and extent of the situation.”

However, Bit4you added that it does not have any reason to believe that the CoinLoan funds it holds will not be recovered.

“We have been informed that a court issued an insolvency judgment against CoinLoan in Estonia on Monday, April 24, 2023. However, to date, we have had no indication that the virtual currencies held by our customers using CoinLoan will not be recoverable, especially considering To CoinLoan’s announcement on April 25, 2023.”

Estonian authorities issued a cease and desist order on April 24, preventing CoinLoan from releasing assets without a “temporary insolvency practitioner.” In June 2022, CoinLoan capped withdrawals at $5,000 within 24 hours in an attempt to avoid a run on funds following the Bitcoin crash. Terra Ecosystem. CoinLoan issued a message to its users stating,

A restriction disposition notice received yesterday (April 24, 2023) requires CoinLoan to cease all operations by its users, including withdrawals. This action is unexpected and has an immediate effect. Therefore, we have no choice but to comply with the above requirements. We are doing our best to resolve this issue as quickly as possible. “

Bit4You assets on CoinLoan

To ensure transparency and keep users informed, Bit4You lists the assets and their amount on CoinLoan. This includes 1097.5 ETH worth $2.1 million, 145 BTC worth $4.2 million, and 501 BNB worth approximately $166.00. Other assets held by Bit4You on the platform include ADA, CLT, DOT, LINK, LTC, USDT, XLM, XRP and XMR.

Bit4You assures users that it is doing its best to resolve the issue without risking any funds and protecting the interests of its clients.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.