Belgian crypto platform Bit4You, one of the oldest in Belgium with more than 40,000 customers, is calling it quits. The platform is asking a judge to appoint a provisional administrator to ensure the orderly settlement of its commitments.
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Belgian crypto platform Bit4You quits: have tens of thousands of Belgians lost cash?
Colin Clapson
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Last week, it became known that Bit4You was suspending its operations. According to media reports an estimated €6.5 million was blocked on accounts. The platform referred to “problems at one of its main service providers”, Estonia’s CoinLoan, which no longer possessed the required registration as a virtual currency custodian.
On 24 April, a provisional administrator was appointed at that company by order of a court. Two days later, "to best protect the interests of our customers", Bit4You too suspended all operations.
The platform says it has asked CoinLoan's provisional administrator to recover the virtual currencies, "which remain the property of Bit4You's customers, as soon as possible regardless of whether CoinLoan or Bit4You continue their operations".
No deposit guarantee
Meanwhile, the Belgian platform has itself withdrawn its application to register as a VASP (Virtual Assets Service Provider) and has asked a judge to appoint a temporary administrator.
It is not clear how much money it will be able to recover. Unlike a traditional bank, there is no deposit guarantee of up to €100,000 for crypto currency deposits.