Hong Kong Cryptocurrency Exchange Freezes Its Customers’ Funds (Report)

Coinsuper, a cryptocurrency exchange based in Hong Kong, reported that dozens of Coinsuper clients complained about not being able to retrieve their funds. At least seven clients have reported the matter to the police.

Coinsuper – Frozen funds

A Bloomberg report on January 7, 2017 stated that the problem occurred in November. Five customers of the trading venue told the media they cannot withdraw $55,000, which includes both cash and digital assets. They even filed reports with the local authorities in an attempt to find a solution.

Coinsuper executives could not be reached for comment. The Telegram chat administrator for the exchange has stopped responding over a month back to inquiries about failed transactions. The admin did ask affected clients for their e-mail addresses last week. Some users still indicated that there wasn’t any follow-up.

According to a spokesperson for the Hong Kong Police, another case is being investigated. A person who bought cryptocurrencies “via an investor company” couldn’t retrieve her funds after December 2013.

Coinsuper’s trading app is still functional at the moment. In the last 24 hours, it handled $18.5 million in volume.

Hong Kong’s Crypto Environment

Hong Kong, a special administrative region in China, uses an “opt-in” regulatory system for digital asset trading venues. This means that they can apply to be supervised. Joshua Chu, a consultant at ONC Lawyers, says that this model is not very effective and that the city may change its policy.

Local lawmakers had planned to apply a rule that would only allow millionaires to trade in digital assets within the megapolis. Christopher Hui, Hong Kong’s Treasury Secret, agreed with the government’s plan. He said it was a well-thought-out decision that could bring benefits to the city.

Coinsuper – Previous Issues

The platform was founded in 2017 by Karen Chen, a former executive at UBS Group AG. It has a turbulent history. One of the venture capital backers revealed that his company had written off $1 million in Coinsuper investment.

His entity lost contact with the trading venue almost half a year later. Chen also stopped responding to WeChat. Between July and December 2013, Coinsuper lost contact with many employees.

Pantera Capital is managed by Dan Morehead, a veteran bitcoin investor. It led a Series A round of funding in 2018 as the amount was not disclosed.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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