The Hong Kong cryptocurrency exchange reportedly has suspended all withdrawal requests. Coinsuper is the only government-licensed cryptocurrency company in China, founded by the former CEO of UBS Group AG in November 2017.

The Bloomberg report notes that exchange clients have not been able to withdraw funds since the end of November, based on viewing messages in the main chat group of the Telegram exchange.

Five clients reportedly filed police filings after apparently stopping the removal of tokens, with the result that they were unable to claim around $ 55,000 in crypto and cash.

With a public uprising against Coinsuper backed by Pantera Capital and led by Karen Chen, the former head of UBS China Inc., Hong Kong’s authorities may be forced to impose tougher police measures. As Cointelegraph reported in September 2021, the city’s Securities and Futures Commission’s senior chief said more serious action was needed to combat cryptocurrency fraud, pointing to future guidance on digital asset trading in the Special Administrative Region.

Last month, the administrator of the Coinsuper Telegram discussion group stopped responding to requests for unsuccessful withdrawals, and reappeared last week asking customers for their email addresses. Some clients at the time said that no further action followed even after they submitted their details.

According to computer company Nomics, the exchange has traded volume of about $ 17.4 million over the past 24 hours, up from a daily high of $ 1.3 billion at the end of 2019.

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Speaking to Bloomberg, one of the venture capitalists backing Coinsuper said they have completely canceled their $ 1 million investment in the stock market. The venture capitalist said they lost contact with the exchange’s management six to eight months ago, and chairman and CEO Karen Chen stopped responding to WeChat messages. Many workers reportedly left the company between July and December.

Source: CoinTelegraph