Auditor and lawyer appointed to clear the mess of first Belgian cryptocurrency exchange

Belgium’s stock market authority, the FSMA, has referred the file on the debacle at Bit4You, Belgium’s first cryptocurrency trading platform, to the Brussels public prosecutor’s office, L’Echo reported on Monday.

The Brussels company court has also appointed two provisional administrators, lawyer Nicholas Ouchinsky and auditor Dirk Smets, to examine options for rescuing the platform and protecting the interests of customers. They will have to report back to the court in the coming weeks.

Some 41,800 Belgian clients have invested around €13 million on the platform, but these funds are currently frozen and clients do not know if they will ever be able to recover them. The platform has suspended operations since its subcontractor, CoinLoan, entered insolvency proceedings initiated by the Estonian judiciary.

The FSMA referred the Bit4You case to the Brussels prosecutor’s office after finding “irregularities in the registration application filed by Bit4You (…).”

“Following Coinloan’s subsequent collapse, Bit4You suspended its operations and eventually withdrew its registration application on 2 May 2023,” the FSMA reported. “As a result, it automatically lost the benefit of the provisional authorisation.

“The FSMA had previously notified Bit4You of its intention to refuse its application for registration and informed the public prosecutor of the irregularities found in the former management,” the securities regulator explained.

Most of Bit4You’s management resigned following the suspension of operations, and the platform no longer has a provisional authorisation to operate in Belgium.

The provisional administrators appointed by the court will examine the possibilities for rescuing the platform and have to report to the court in the coming weeks.

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