Five clients are said to have filed police reports when token withdrawals on the CoinSuper trading platform were supposedly suspended, leaving them unable to recoup about $55,000 in cryptocurrency and fiat.
According to reports, a cryptocurrency exchange in Hong Kong has halted all withdrawal requests. Coinsuper, the only government-licensed cryptocurrency corporation in China, was created in November 2017 by a former top UBS Group AG executive.
Based on a study of posts on the exchange’s primary Telegram chat group, Bloomberg reports that customers of the bourse have been unable to withdraw funds since late November.
Five customers are said to have filed police reports when token withdrawals were allegedly suspended, leaving them unable to retrieve $55,000 in cryptocurrency and money (fiat).
I called the Japanese Consulate in Hong Kong about the withdrawal trouble of the Coin Super Exchange, I was asked to report to the Hong Kong Police Force, but this time I went to the western police district of the Hong Kong Police Force. I have provided information #CoinSuper pic.twitter.com/GuXBLt0Nm2— 火拳FX・越境通貨《紐》【PEGASUS WORLD KIT】 (@PegasusWorldKit) January 4, 2022
The public backlash over Coinsuper, which is financed by Pantera Capital and led by Karen Chen, a former president of UBS China Inc., may force Hong Kong authorities to tighten up their enforcement.
A senior executive for the city state’s Securities and Futures Commission warned in September 2021, as reported that further action is needed to combat cryptocurrency fraud, foreshadowing future guidelines on digital asset trading in the special administrative region.
The administrator of Coinsuper’s Telegram discussion group apparently stopped responding to concerns about unsuccessful withdrawals last month, then reappeared this week, requesting consumers’ email addresses. Even after providing their information, some clients said there was no follow-up.
According to analytics firm Nomics, the exchange processed around $17.4 million in volume in the last 24 hours, down from a daily peak of $1.3 billion in late 2019. One of the venture investors who sponsored Coinsuper told Bloomberg that their $1 million investment in the exchange has been totally cancelled.
The venture capital firm stated that they had lost contact with the exchange’s management team six to eight months ago and that chairman and CEO Karen Chen had stopped responding on WeChat. Several employees reportedly left the company between July and December, according to reports.