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

  • Bloomberg reports that clients of a Hong Kong cryptocurrency exchange say they have not been able to withdraw their funds.
  • Five clients said they filed a police statement after their funds were apparently frozen.
  • The report said that a supporter of venture capital wrote off his entire investment of about one million dollars.

Bloomberg reported on Friday that clients of a Hong Kong cryptocurrency exchange say they are unable to withdraw their funds or tokens from the exchange, and some have submitted reports to the police about the matter.

The report said that dozens of Exchange Coinsuper customers have not been able to make withdrawals since late November, citing a review of messages on the company’s official Telegram chat. Five clients of the news agency said they filed police reports after their withdrawals were apparently frozen, leaving them unable to recover nearly $55,000 in tokens and cash.

Bloomberg reports that Coinsuper executives have not responded to calls and messages seeking comment. A Hong Kong police spokesperson, responding via email to the news agency’s query about Coinsuper’s complaints, said it was investigating a case in which someone who had purchased cryptocurrency “via an investment firm” had not been able to withdraw funds since December.

A partner in a Coinsuper venture capital backer, who requested anonymity and his company, said it has written off his entire nearly $1 million investment.

The report said Coinsuper is run by the former president of UBS China Inc. Karen Chen, and her trading app still works. The report said the matter could spark calls for broader regulatory oversight in Hong Kong as the city uses a “selective” regulatory structure for cryptocurrency exchanges, or the exchanges could apply to regulation.

The report notes that in November 2020, the head of the Hong Kong Securities Supervisory Authority said it would propose a licensing system for cryptocurrency trading platforms.