The operations of the Belgian cryptocurrency lending site Bit4You have been suspended after one of its service providers, CoinLoan, was found to be insolvent by an Estonian court.
According to a blog post published by the lender on Wednesday, Bit4You heard of CoinLoan’s bankruptcy on April 24 and that it is no longer properly registered as a custodian of digital assets.
According to Bit4You, there hasn’t been any evidence that the money kept with CoinLoan won’t be retrieved.
Bit4You provided a list of the various assets it had kept on CoinLoan, including 501.1 BNB ($166,000), 1097.5 ETH ($2.1 million), and 145.3 BTC ($4.2 million).
On Monday, CoinLoan was required to stop all activities, including withdrawals, by an Estonian court. Following the consequences of the collapse of the Terra ecosystem, the platform restricted withdrawals to $5,000 every 24-hour period in June of last year in order to prevent a run on its cash.