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).
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.