Hong Kong-based Coinsuper allegedly blocks customers’ withdrawals

Bloombergs report suggests that clients of the Bourse have actually not been able to withdraw funds from late November. This is based upon an evaluation on messages in the primary Telegram chat group.

According to reports, a cryptocurrency exchange in Hong Kong has actually stopped accepting withdrawal demands. Coinsuper, the only cryptocurrency exchange licensed by Chinas government, was established by an ex-executive of UBS Group AG in November 2017.

5 customers submitted complaints with the police after token withdrawals were stopped, according to reports. They could not claim around $55,000 in cryptocurrency and cash.

The administrator of Coinsupers Telegram conversation group stopped reacting last month to questions about unsuccessful withdrawals. He then resurfaced last Wednesday, asking consumers for their e-mail addresses. Some customers declared that no follow-up was done after they submitted their information.

According to Nomics data firm, the exchange managed $17.4 million of volume over the past 24 hours. This is a reduction from the everyday peak of $1.3 B in late 2019.

I called the Japanese Consulate Hong Kong to ask about the Coin Super Exchange withdrawal issue. I was asked to report the matter to the Hong Kong Police Force. Nevertheless, this time, I went to the Western Police District of the Hong Kong Police Force. I have actually supplied info #CoinSuper pic.twitter.com/GuXBLt0Nm2
— Huo Quan FXYue Jing Tong Huo [( PEGASUS WORLD KIT)] (@PegasusWorldKit) January 4, 2022

The Hong Kong authorities might be forced to tighten their policing after the public outcry versus Coinsuper. Cointelegraph reported that a senior executive from the Securities and Futures Commission of the city specified that more action was needed to fight cryptocurrency fraud.

Related: Hong Kong proprietors rent crypto exchanges after regulatory clarity

Bloomberg was called by one of the Venture Capitalists who had supported Coinsuper. He stated that they had actually entirely canceled their $1M investment in the exchange. According to the VC, they lost contact with the exchanges management team in between 6 and 8 months earlier. Karen Chen, chairperson and CEO of Coinsuper, stopped responding on WeChat. Reports declare that several employees left the company in July and December.
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I called the Japanese Consulate Hong Kong to ask about the Coin Super Exchange withdrawal issue. I was asked to report the matter to the Hong Kong Police Force. The Hong Kong authorities might be forced to tighten their policing after the public protest versus Coinsuper. He stated that they had actually totally canceled their $1M investment in the exchange. According to the VC, they lost contact with the exchanges management group between six and eight months ago.