Customers of a crypto exchange in Hong Kong reportedly say their funds are frozen | Currency News | Financial and Business News

  • Clients of a cryptocurrency exchange in Hong Kong say they have been unable to withdraw their funds, Bloomberg reported.
  • Five clients said they filed police reports after their funds were apparently frozen.
  • The report said that a venture capital sponsor canceled its total investment of about $ 1 million.

Clients of a cryptocurrency exchange in Hong Kong say they are unable to withdraw their money or tokens from the exchange and some have reported to the police on the matter, Bloomberg reported Friday.

Dozens of clients of the Coinsuper exchange have been unable to make withdrawals since late November, according to the report, citing a review of messages on the company’s official Telegram chat. Five clients told the news agency that they filed police reports after their withdrawals were apparently frozen, leaving them unable to recover approximately $ 55,000 in tokens and cash.

Bloomberg reported that Coinsuper executives did not respond to calls and messages seeking comment. A Hong Kong police spokesman, who responded by email to the news agency’s inquiry about Coinsuper’s complaints, said it is investigating a case in which a person who bought cryptocurrencies “through an investment firm. “He had not been able to withdraw his funds since December.

A partner at one of Coinsuper’s venture capital backers, who asked that he and his company not be identified, said he canceled his total investment of roughly $ 1 million.

Coinsuper is run by former UBS China Inc. president Karen Chen, according to the report, and its trading app was still operational. The matter may fuel calls for broader regulatory oversight in Hong Kong, as the city uses a “voluntary subscription” regulatory structure for crypto exchanges, or exchanges may request to be regulated, according to the report.

The report noted that in November 2020, the head of Hong Kong’s securities watchdog said that he would propose a licensing regime for crypto trading platforms.

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