Belgian cryptocurrency lending platform Bit4You has suspended its operations after one of its service providers, CoinLoan, was declared insolvent by a court in Estonia.
Bit4You learned of CoinLoan's insolvency on April 24, and that it no longer has necessary registration as a digital asset custodian, the lender said in a blog post on Wednesday.
There has yet to be any indication that the funds held with CoinLoan will not be recovered, Bit4You added.
A court in Estonia ordered CoinLoan to halt its operations, including withdrawals, on Monday. Last June, the platform limited withdrawals to $5,000 per 24-hour period to stave off a run on its funds, following the fallout from the collapse of the Terra ecosystem.
Read More: Voyager Digital Says Binance.US Sent Letter Terminating $1B Asset Buy Deal
Edited by James Rubin.
Recommended for you:
- In Davos, Blockchain Yields More Promises Than Problems
- Yuga Labs' Otherside Metaverse to Launch 'Second Trip' on March 25
- First Mover Asia: What's Next for Bitcoin After Biggest One-Day Price Pop in 2 Months?
- Join the Most Important Conversation in Crypto and Web3 in Austin, Texas April 26-28