Cryptocurrency: Bit4You applies for a provisional administrator
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- 29 May 2023
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Belgian crypto trading platform Bit4You is seeking assistance from the business court to appoint an interim administrator in an attempt to retrieve its customers' funds, as stated on the company's website. The platform, boasting a customer base of over 40,000 users, had previously announced the suspension of its operations a few days ago. Reports suggest that approximately €6.5 million has been frozen in the process.
Bit4You attributed the complications to one of its primary service providers, CoinLoan, which is located in Estonia. CoinLoan had lost its necessary registration as a virtual currency depository. Consequently, on April 24th, a provisional administrator was assigned to CoinLoan by a court order. In response, Bit4You promptly halted all activities "in the best interests of our valued customers."
The platform has since contacted the provisional administrator of CoinLoan, urging them to expedite the recovery of the virtual currencies. Simultaneously, Bit4You has withdrawn its application for registration as a Virtual Assets Service Provider and has requested the appointment of an interim administrator through the business court. The total amount of funds that can be recovered remains uncertain at this stage.
Unlike traditional banks, cryptocurrencies do not benefit from deposit insurance, leaving users without a safety net.
