Belgian cryptocurrency trading platform Bit4You is asking the business court to appoint a provisional administrator to try to recover its customers’ money, the start-up said on its website.
The platform, which has more than 40,000 customers, had already announced the suspension of its activities a few days ago. An estimated €6.5 million was blocked, according to several media.
Bit4You cited problems at one of its main service providers, CoinLoan, based in Estonia, which no longer had the required registration as a virtual currency depository.
On 24 April, a provisional administrator was appointed to the Estonia-based company by court order. Two days later, Bit4You suspended all its activities “to protect the best interests of our customers.”
The platform said it had asked CoinLoan’s provisional administrator to recover the virtual currencies as soon as possible.
In the meantime, Bit4You has withdrawn its application for registration as a Virtual Assets Service Provider and has asked the business court to appoint a provisional administrator. It is not yet known how much money it will be able to recover.
Unlike traditional banks, there is no deposit guarantee for crypto-currencies.
