• Bit4You, a Belgian cryptocurrency trading platform, has suspended operations after learning that CoinLoan, one of its service providers, was declared insolvent by an Estonian court.
• The Estonian court issued a stop order on the 24th of April preventing CoinLoan from releasing assets in the absence of a “temporary insolvency practitioner”.
• Bit4You listed out the assets it had on CoinLoan and assured users that it was doing everything in its power to resolve the situation as quickly as possible.
Bit4You Suspends Operations
Belgian cryptocurrency trading platform Bit4You has announced the suspension of operations after it discovered that CoinLoan, one of its service providers, was declared insolvent by an Estonian court.
CoinLoan Insolvency
The cryptocurrency trading platform learned about CoinLoan’s insolvency issues on the 24th of April. According to a blog post published by the crypto lender, it learned that CoinLoan no longer had the necessary registration to qualify as a digital asset custodian. However, Bit4you added that it does not have any reason to believe that the funds it held with CoinLoan would not be recovered.
Estonian Authorities Issue Stop Order
Estonian authorities issued a stop order on the 24th of April, preventing CoinLoan from releasing assets in the absence of a “temporary insolvency practitioner”. In June 2022, CoinLoan had capped withdrawals at $5000 for 24 hours in an attempt to stave off a run on its funds following the collapse of the Terra ecosystem.
Assets Held On CoinLoan
In an effort to ensure transparency and keep users in the loop, Bit4You listed out the assets and how much of them it had on CoinLoan including 1097.5 ETH worth $2.1 million, 145 BTC worth $4.2 million, and 501 BNB worth around $166,00 among other assets such as ADA CLT DOT LINK LTC USDT XLM XRP and XMR .
Bit4You Assures Users
Bit4You assured users that it was doing everything in its power to resolve this situation as quickly as possible so they can access their funds without any issues or delays