Bit4You Suspends Operations Following CoinLoan’s Insolvency Declaration

Belgian Cryptocurrency Trading Platform Bit4You Suspends Operations Due to CoinLoan’s Insolvency

Bit4You, a cryptocurrency trading platform based in Belgium, has suspended operations after one of its service providers, CoinLoan, was declared insolvent by an Estonian court. According to a blog post published by CoinLoan, the platform no longer had the necessary registration to qualify as a digital asset custodian.

The CoinLoan Insolvency

On April 24, 2023, Bit4You learned about CoinLoan’s insolvency issues. In response, Bit4You immediately took steps to understand the situation’s nature and scope. However, Bit4You stated that it had no reason to believe that the funds held with CoinLoan would not be recovered.

Estonian authorities issued a stop order preventing CoinLoan from releasing assets in the absence of a “temporary insolvency practitioner.” CoinLoan had capped withdrawals at $5000 for 24 hours in June 2022, trying to prevent a run on its funds following the Terra ecosystem’s collapse. CoinLoan published a message to its users stating that it had to comply with the said requirements and was doing everything possible to resolve the situation quickly.

Bit4You Assets on CoinLoan

Bit4You listed out the assets and how much of them it had on CoinLoan to maintain transparency and keep its users informed. These assets include 1097.5 ETH worth $2.1 million, 145 BTC worth $4.2 million, and 501 BNB worth around $166,00. Other assets held on the platform include ADA, CLT, DOT, LINK, LTC, USDT, XLM, XRP, and XMR.

Bit4You assured its users that it was taking steps to resolve the situation without risking any funds and protecting the interest of its clients.

• Belgian cryptocurrency trading platform Bit4You has suspended operations after CoinLoan was declared insolvent.
• Bit4You learned about CoinLoan’s insolvency on April 24, 2023.
• Estonian authorities issued a stop order preventing CoinLoan from releasing assets.
• Bit4You listed out the assets it had on CoinLoan, ensuring transparency and keeping users informed.
• Bit4You assured its users that it was taking steps to resolve the situation without risking any funds and protecting the interest of its clients.