Hong Kong-based Coinsuper allegedly blocks prospects’ withdrawals


A cryptocurrency change in Hong Kong has reportedly stopped all withdrawal requests, in keeping with reviews. Coinsuper is the only real crypto agency in China that’s licensed by the federal government, and was based by a former senior UBS Group AG govt in November 2017.

The report by Bloomberg means that prospects of the bourse have been unable to withdraw funds since late November, primarily based on a overview of messages on the change’s main Telegram chat group.

Five purchasers reportedly filed police complaints after token withdrawals had been apparently halted, leaving them unable to reclaim round $55,000 of cryptocurrency and cash.

The public outcry towards Coinsuper, which is backed by Pantera Capital and run by Karen Chen, who previously labored as president of UBS China Inc., would possibly compel the Hong Kong authorities to use stricter policing. As reported by Cointelegraph in Sept. 2021, a senior govt for the town state’s Securities and Futures Commission mentioned that higher motion is required to fight cryptocurrency fraud, suggesting future steerage on digital asset buying and selling within the particular administrative area.

Last month, the administrator of Coinsuper’s Telegram dialogue group allegedly stopped responding to inquiries about failed withdrawals, then resurfaced final week, asking prospects to offer their e-mail addresses. Some purchasers mentioned on the time that there was no follow-up even after they offered their particulars.

The change processed roughly $17.4 million of quantity within the final 24 hours — down from a each day peak of $1.3 billion in late 2019, in keeping with information agency Nomics.

Related: Hong Kong landlords lease to crypto exchanges following regulatory readability

While chatting with Bloomberg, one of many enterprise capitalists that had backed Coinsuper mentioned that they’ve utterly canceled their $1 million funding within the change. The VC mentioned that they had misplaced communication with the change’s administration crew six to eight months in the past, and chairperson and CEO Karen Chen stopped replying on WeChat. According to reviews, a number of staff departed the agency between July and December.

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