- Estonian-based CoinLoan’s insolvency investigation causes Bit4You to suspend all activities on its platform.
- Bit4You explained that the reason for its suspension was to protect its users.
- Estonia’s cessation order to CoinLoan was unexpected and swung into motion immediately.
Belgian-based cryptocurrency trading firm, Bit4You, has taken precautionary measures against being exposed to the possibility of one of its major partnering firms—CoinLoan—being shut down.
On April 26, Bit4You published a public notice on its Medium page, announcing its suspension of activities and notifying the market and the users of its recent development.
According to the crypto trading platform, CoinLoan no longer had lost its registration as a digital currency custodian; thereby, Bit4You would be taking a step back to assess the situation and try to retrieve all of its recoverable users’ assets stored on CoinLoan.
Bit4You stated that it recently became notified of CoinLoan’s dilemma, which began on April 24, when the Estonian court issued a stop order on the cryptocurrency loaning company.
Although the government has tied CoinLoan’s hands, Bit4You affirmed that it had seen no reason why it should not be able to retrieve the digital assets stored on CoinLoan on behalf of its clients.
According to the court order issued against the continuation of business activities by CoinLoan, the Tallinn Courthouse of Harju Court declared that CoinLoan was “prohibited from disposing of all assets without the approval of the temporary insolvency trustee.”
CoinLoan released a blog post alerting its users and the community of the cessation order, stating that it was unexpected and had an immediate effect.
The company stated that it was working on finding a solution to the problem as swiftly as possible, even though it had promised to comply with the conditions that the Estonian government had imposed on it.
“Our legal team has offered enough arguments to prove CoinLoan’s ability to fulfill its obligations; hence, the appointment of the interim trustee is the simplest method for the court to find a solution by allowing an independent third party to confirm the financial condition of the firm,” CoinLoan announced.
In its announcement, Bit4You listed all 12 crypto assets on CoinLoan for the trading firm’s clients.
Among the digital currencies held on CoinLoan are 1097 ETH, 145 BTC, 5294 USDT, 501 BNB, and many more were stored on the crypto-loaning service provider.
Bit4You and CoinLoan have both appealed to their users that they are doing everything possible to resume their operations.
Though CoinLoan has declared its intention to file an appeal, it must comply with the court’s ruling and shut down all activities.
Conclusion
Bit4You’s suspension of activities on its platform was a response to CoinLoan’s abrupt prohibition of operations by the Estonian court. The cryptocurrency loaning company is undergoing a bankruptcy investigation, but Bit4You has assured its users that it would try to recover all assets blocked on its partner.
