Bit4You, Belgium’s sole crypto asset lending platform, has recently halted its operations due to liquidity issues with their service provider, CoinLoan.
According to Bit4You’s official statement, the suspension of activities and the imposition of a withdrawal ban are a result of their Estonian partner’s problems.
CoinLoan has announced that they no longer have the necessary permits to conduct their activities, and the court decision to restrict transactions has forced them to temporarily stop all transactions for their users, including withdrawals.
Although both CoinLoan and Bit4You have mentioned a temporary suspension of operations, Bit4You’s subsequent statements suggest that the situation could be more severe.
On Monday, April 24, the Estonian judicial authorities issued a decision on insolvency regarding CoinLoan.
At present, Bit4You has no confirmation that virtual assets held on behalf of their clients in CoinLoan can be returned, and estimates suggest that cryptocurrency assets locked in CoinLoan can consist of 25% to 86% of Bit4you users’ funds.
It’s important to note that the Estonian platform CoinLoan faced its first set of problems in July last year when they introduced restrictions on asset withdrawals from the platform up to $5,000 per day due to the difficult economic situation.