Belgium’s First And Only Crypto Lender Bit4you Is Suspending Its Activities 14
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Belgium’s First And Only Crypto Lender Bit4you Is Suspending Its Activities

By Aditya Anandon
  • Bit4you has announced the suspension of its activities following the insolvency of a major service provider. 
  • The Brussels-based firm was Belgium’s first and only crypto lending platform. 
  • The insolvent service provider held more than $8 million worth of crypto assets for the lender. 

Belgian crypto lender Bit4you has announced the suspension of all activities on its platform. The Brussels-based crypto lender’s decision came after one of its main service providers, CoinLoan, was declared insolvent earlier this week. Bit4you is the first and only crypto lending platform in Belgium. 

CoinLoan Holds $8 Million Of Bit4you’s Crypto Assets

According to a press release from Bit4you, CoinLoan no longer has a registration to operate as a custodian of virtual currencies. A court in Estonia reportedly declared the service provider insolvent earlier this week. Bit4you stated that the decision to suspend activities on its platform was in the interest of its customers. The platform is reportedly taking all necessary steps to protect clients’ crypto assets. 

CoinLoan paused all operations, including withdrawals, on its platform following a Notice of restraint on disposition from the court on April 24, 2023. The firm recently published a message which stated that its legal team had made available sufficient documents to CoinLoan’s ability to fulfill its obligations. However, the court has appointed an interim trustee, which will independently verify the firm’s financials. To that end, any obligation to Bit4you may take “several business days” to get approval from the Trustee. 

“We understand that this situation may cause concern, but we want to assure you that we are doing our utmost to resolve this situation diligently and to protect the interests of our clients.”

As per a list published by Bit4you, CoinLoan held crypto assets worth over $8 million belonging to the Belgian crypto lender at the time of its solvency. These include 145 BTC, 1097 ETH, 501 BNB, 279 XMR, 638,630 ADA, and 4822 LINK, among several other cryptocurrencies. The crypto lender stated that there was no indication that these assets will not be recovered.