Hong Kong-based Coinsuper allegedly blocks customers’ withdrawals

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A cryptocurrency alternate 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 suggests that clients of the bourse have been unable to withdraw funds since late November, based mostly on a evaluate of messages on the alternate’s major Telegram chat group.

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5 shoppers reportedly filed police complaints after token withdrawals had 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 town state’s Securities and Futures Fee stated that larger action is needed to combat cryptocurrency fraud, suggesting future steering 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 e mail addresses. Some shoppers stated on the time that there was no follow-up even after they offered their particulars.

The alternate 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, according to knowledge agency Nomics.

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