Coinsuper Struggles after funds freezing

• Coinsuper, a cryptocurrency exchange based in Hong Kong, was reportedly struck by frozen funds, disabling the customers regarding money withdrawal.
• As Hong Kong’s one of the largest exchanges, Coinsuper has managed a volume of $1.3 Billion within a day back in 2019.
• Additions of Tether stablecoin and Solana were announced by the cryptocurrency exchange back in September.

Furied Customers

Clients of Coinsuper, a cryptocurrency exchange based in Hong Kong, say that withdrawal of tokens or money has been disabled, and around 7 individuals have reported the issue to the law enforcement.

Many customers haven’t been able to execute money or tokens’ withdrawal from Coinsuper since November, according to the text review on the organization’s official telegram channel. 5 clients told a new agency that reports have been filed to the police following the event, after the money withdrawal was frozen. They were unable to withdraw an amalgamated fund of around USD 55,000 of tokens and cash.

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Terry Chan, an employee from the town’s financial sector, began utilizing the platform in November 2020, becauseHong Kong-based Coinsuper clients were unable to withdraw funds, tokens it was mainstream in the city at that time. The individual attempted a withdrawal of around $4000 in USD from the exchange in December, and observed less liquidity in trading on the platform. In early January, the individual filed a group complaint with the police along with a couple of affected Coinsuper users. 

An “opt-in” authoritarian regime is utilized by Hong Kong by the cryptocurrency exchanges, which means that the application can be filed by crypto exchanges to become regulated.

Hong Kong might be moving away from this model at some point in the ongoing year as per Joshua Chu, an ONC Lawyers consultant.

Coinsuper CEO Karen Chen stated that she has a portion invested in the organization but is not involved in the operations. Chen stopped being a Coinsuper director in March 2020. Kraken was listed as the biggest Coinsuper shareholder as per the company registry’s yearly report.

A latest funding round was finished by the organization in 2019, with an unrevealed amount. 

The controversy surrounding Coinsuper, which is funded by Pantera Capital, might drive demands in Hong Kong for more governmental control.

In November 2020, the town’s financial watchdog said that it will introduce a licensing scheme for all crypto-trading services, a strategy that competitor financial powerhouse Singapore is exploring as well.

Calls and texts seeking response from Coinsuper officials were not returned.

In answer to a news agency’s inquiry regarding Coinsuper accusations, a Hong Kong police spokesperson said through email that the department is looking into one instance in which a client who purchased cryptocurrency “through an investment business” has been reluctant to retrieve the assets since December.

Back in September, it was announced by Coinsuper that they will be adding the stablecoin Tether as well as the Solana token on their exchange. The announcement was made on twitter, but the organization’s social handles have been disabled since the beginning of December.