Hong Kong-based Coinsuper allegedly blocks clients’ withdrawals


A cryptocurrency change in Hong Kong has reportedly stopped all withdrawal requests, in response to stories. Coinsuper is the only 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 clients of the bourse have been unable to withdraw funds since late November, primarily based on a assessment of messages on the change’s major Telegram chat group.

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

The general public outcry in opposition to 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 Fee mentioned that higher motion is required to fight cryptocurrency fraud, suggesting future steerage on digital asset buying and selling within the particular administrative area.

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

The change processed roughly $17.4 million of quantity within the final 24 hours — down from a day by day peak of $1.3 billion in late 2019, in response to knowledge agency Nomics.

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Whereas 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 group six to eight months in the past, and chairperson and CEO Karen Chen stopped replying on WeChat. In accordance with stories, a number of staff departed the agency between July and December.

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