Bit4You Suspends Its Operations After CoinLoan Receives Cessation Order

April 28, 2023

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The Belgian trading platform Bit4You suspended its operations, including withdrawals on April 26, 2023, while the CoinLoan insolvency investigation by Estonian regulators is going on. CoinLoan is the key business partner for Bit4You.

Citing in their blog post, Bit4You has shared it was necessary to take this action to protect the platform users while its key partner company is undergoing an investigation in Estonia. The Estonian regulatory authorities issued an order for CoinLoan on April 24 prohibiting the company from processing or releasing any assets with eh consent of the temporarily appointed insolvency practitioner.

Bit4You also claimed that it does not indicate that the digital currencies/assets held with CoinLoan on behalf of its customers will not be recoverable. It believes that the company is capable to meet its obligations as the legal team has already provided sufficient arguments to prove the ability of the CoinLoan.

According to the current list of Bit4You users and company assets that are locked up in the CoinLoan suspension order, there are more than 145 Bitcoin valued at more than $4 Million. Reportedly, this represents 81% of the organization’s total digital assets in BTC.

The CoinLoan has already signed its intent to appeal the decision while diligently complying with the Estonian courts’ cessation order.

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