Bit4You, a cryptocurrency trading platform based in Belgium, has suspended all its activities, including withdrawals, on April 26th. This was a result of an investigation into insolvency of one of its significant partners. Bit4You explained in a blog post that it was a necessary action to protect its users, citing Estonian regulation against CoinLoan, a cryptocurrency loan service partnered with Bit4You. On April 24, the Estonian regulatory authorities issued a stop order that forbids CoinLoan from processing or releasing assets without the explicit permission of a designated “temporary insolvency practitioner.”
Bit4You claims that it has “no indication that virtual currencies held on behalf of our customers with CoinLoan will not be recoverable,” but among the locked assets is more than 145 Bitcoin worth over $4 million, representing more than 81% of Bit4You’s total BTC assets. CoinLoan intends to appeal the decision but must currently comply with the Estonian court’s cessation order.
