Over 81% of Bit4You Bitcoin and several other digital assets are held by CoinLoan.
Bit4You, a leading Belgium cryptocurrency exchange, has halted all its operations, including withdrawals. The reason for pausing operations is the ongoing investigation of one of its partners.
In its official Medium blog post, the exchange noted that one of its leading service providers CoinLoan, based in Estonia, has received an insolvency court order issued against CoinLoan.
However, to date, we have yet to indicate that the virtual currencies held on behalf of our customers with CoinLoan cannot be recovered, mainly because of the message published by CoinLoan on April 25, 2023.
The court ordered CoinLoan not to process any transaction without the concern of a temporarily appointed insolvency practitioner. The court’s orders clearly state releasing, moving, or transferring assets by any means is prohibited without approval. Crunchbase data says CoinLoan has raised $3.1 million in three funding rounds.
The Belgium-based trading platform said in its April 26, 2023 statement, “They have no clear indication that the crypto assets held on behalf of users with CoinLoan will not be recoverable.” More than 145 Bitcoin,638,630 Cardano,1,247,519 XRP, and 1097 Ethereum, including several other valuable tokens of Bit4You users, are stuck with CoinLoan after the insolvency act.
According to the data, CoinLoan holds more than 81% of the BTC holdings of the Bit4You exchange. A blog post CoinLoan highlights that “Their legal team had and is providing sufficient arguments to prove companies ability to fulfill its obligations. The appointment of a provisional trustee seems to be the most effortless way for the court to find a solution by letting an independent third party confirm the financial circumstances of CoinLoan.”
Bit4You was co-founded by Marc Toledo, Jose Zurstrassen, and Sacha Vandamme in 2017. The 24-hour spot trading volume of Bit4You is $7,894.08. As per the CoinMarketCap crypto market data, over 610 registered cryptocurrency exchanges and around 23,702 digital currencies are available for trading.
The overall global crypto market capitalization is $1.20T, and at press time, cryptocurrency leader Bitcoin is trading at $29,300 with a 24-hours trading volume of $22,634,764,877. It is important to note that trading volume descended over 30% compared to the April 27, 2023 trading session.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
