Bit4You, a Belgian cryptocurrency trading platform, has halted its operations around withdrawals, based on an ongoing investigation of one of its partners, as stated by Cointelegraph.
According to Cointelegraph, the step was needed to ensure security for platform customers and citing regulation against CoinLoan, a partnering Estonian cryptocurrency-based loan service. “We would like to inform you that we recently learned that one of our major service providers, Estonia-based CoinLoan, no longer had the required registration as a custodian of virtual currencies,” Bit4You stated.
Based on Cointelegraph’s information, on April 24, 2023, Estonian regulatory forces formed a stop order to prevent CoinLoan from releasing assets in absence of an appointed “temporary insolvency practitioner.” Bit4You stated that there’s “no indication that virtual currencies held on behalf of our customers with CoinLoan will not be recoverable.”
Moreover, Cointelegraph noted that amidst number of current Bit4You users and company assets present in CoinLoan suspension order is over 145 Bitcoin. Reportedly, it shows over 81% of organisation’s total BTC assets. Despite CoinLoan’s aim to appeal the decision, it has been in adherence to Estonian court’s cessation order.