Hong Kong Crypto Exchange Coinsuper Froze Its Users’ Funds

The Hong Kong crypto exchange Coinsuper reportedly froze its users’ funds and a few of them filed police reports indicating that they are unable to withdraw from the platform so let’s find out more in our latest cryptocurrency news.

Dozens of clients of the Hong Kong-based crypto exchange Coinsuper complained that they are not able to retrieve funds from the platform. Seven of them contacted the police about the issue. As per the reports, the problem occurred in November when five customers of the exchange explained they are unable to withdraw their funds worth about $55,000. in looking for a solution, they filed police reports to the local authorities.

The executives of the exchange could not be found for comment but also the administrator of the Exchange’s telegram chat stopped responding to questions about the failed transactions over a month ago. Last week, the admins asked the affected clients to provide their e-mail addresses but some users say there was no follow-up to this action. A police spokesperson said the officials are investigating another similar case where an individual who purchased crypto through an investment company was unable to retrieve the funds since December last year. Coinsuper’s trading application remains functional and handled about $18.5 million in the past 24hours.

The special administrative region of China uses an “opt-in” regulatory regime for the digital asset trading venues which means they can apply to get supervised. As per Joshua Chu who is a consultant at ONC Lawyers, the model is not effective and the city could change this policy in the near future. Last year, the local lawmakers wanted to apply a rule that will allow only millionaires to trade with crypto in the cit. Christopher Hui who is a Treasury Secretary agreed with the plan and said it is a well-thought decision and its consequences could bring more benefits to the city.

Founded in 2017 by Karen Chen, a former executive at UBS Group AG, the platform had a controversial history. One of the partners of the company revealed that the company has written off his entire $1 million investment that was allocated at Coinsuper. Half a year later, his entity lost contact with the trading venue and Chen stopped responding. Also, a lot of employees left Coinsuper last year. Pantera capital by Dan Morehead is also one of the platform’s early backers.