Bit4You, Belgium’s first and only Bitcoin lending platform, announced a suspension of operations after CoinLoan, one of its primary service providers, was declared insolvent by an Estonian court.
CoinLoan, a crypto lending company in the Baltic state, also no longer has the required registration as a virtual currency custodian, according to a statement on Bit4You’s website.
“To date, we have no indication that the virtual currencies held on behalf of our customers with CoinLoan cannot be recovered,” Bit4You continued.
According to the statement, CoinLoan controls around 85.66% of Ripple (XRP) coin, approximately 81.45% of the top cryptocurrency bitcoin, and 67.32% of Ethereum.
Unexpectedly, an Estonian court ordered CoinLoan to cease all activities, including withdrawals, on April 24
To prevent a run on its cash, the business limited user withdrawals in July 2022 to $5,000 every 24-hour period.