Belgian Crypto Lender Bit4You Suspends Activities After Service Provider Declared Insolvent
Bit4You learned of CoinLoan's insolvency on April 24, and that it no longer has the necessary registration as a digital asset custodian.
Apr 27, 2023 at 4:25 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/HEGDHFPHOJBNJHHY6AQW665VAY.jpg)
Belgian cryptocurrency lending platform Bit4You has suspended its operations after one of its service providers, CoinLoan, was declared insolvent by a court in Estonia.
Bit4You learned of CoinLoan's insolvency on April 24, and that it no longer has necessary registration as a digital asset custodian, the lender said in a blog post on Wednesday.
There has yet to be any indication that the funds held with CoinLoan will not be recovered, Bit4You added.
Bit4You listed the quantities of different assets it had stored on CoinLoan, including 145.3 BTC ($4.2 million), 1097.5 ETH ($2.1 million) and 501.1 BNB ($166,000).
A court in Estonia ordered CoinLoan to halt its operations, including withdrawals, on Monday. Last June, the platform limited withdrawals to $5,000 per 24-hour period to stave off a run on its funds, following the fallout from the collapse of the Terra ecosystem.
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Jamie Crawley is a CoinDesk news reporter based in London.