Hong Kong-based Coinsuper allegedly blocks customers’ withdrawals

A
cryptocurrency
exchange
in
Hong
Kong
has
reportedly
stopped
all
withdrawal
requests,
according
to
reports.
Coinsuper
is
the
sole
crypto
firm
in
China
that
is
licensed
by
the
government,
and
was
founded
by
a
former
senior
UBS
Group
AG
executive
in
November
2017.

The
report
by
Bloomberg

suggests

that
customers
of
the
bourse
have
been
unable
to
withdraw
funds
since
late
November,
based
on
a
review
of
messages
on
the
exchange’s
primary
Telegram
chat
group.

Five
clients
reportedly
filed
police
complaints
after
token
withdrawals
were
apparently
halted,
leaving
them
unable
to
reclaim
around
$55,000
of
cryptocurrency
and
money.

The
public
outcry
against
Coinsuper,
which
is
backed
by
Pantera
Capital
and
run
by
Karen
Chen,
who
formerly
worked
as
president
of
UBS
China
Inc.,
might
compel
the
Hong
Kong
authorities
to
apply
stricter
policing.
As
reported
by
Cointelegraph
in
Sept.
2021,
a
senior
executive
for
the
city
state’s
Securities
and
Futures
Commission
said
that
greater

action
is
needed
to
combat
cryptocurrency
fraud
,
suggesting
future
guidance
on
digital
asset
trading
in
the
special
administrative
region.

Last
month,
the
administrator
of
Coinsuper’s
Telegram
discussion
group
allegedly
stopped
responding
to
inquiries
about
failed
withdrawals,
then
resurfaced
last
week,
asking
customers
to
provide
their
email
addresses.
Some
clients
said
at
the
time
that
there
was
no
follow-up
even
after
they
provided
their
details.

The
exchange
processed
roughly
$17.4
million
of
volume
in
the
last
24
hours

down
from
a
daily
peak
of
$1.3
billion
in
late
2019,

according

to
data
firm
Nomics.



Related:




Hong
Kong
landlords
lease
to
crypto
exchanges
following
regulatory
clarity

While
speaking
to
Bloomberg,
one
of
the
venture
capitalists
that
had
backed
Coinsuper
said
that
they
have
completely
canceled
their
$1
million
investment
in
the
exchange.
The
VC
said
they
had
lost
communication
with
the
exchange’s
management
team
six
to
eight
months
ago,
and
chairperson
and
CEO
Karen
Chen
stopped
replying
on
WeChat.
According
to
reports,
several
workers
departed
the
firm
between
July
and
December.

read original article here