Coinsuper, a Hong Kong-based cryptocurrency exchange had their customers complaining about their inability to withdraw their funds. Five customers filed police complaints about their token withdrawals. Their funds are having difficulty withdrawing. The incident prevented them from reclaiming around $55,000 in cryptocurrency and fiat money they had earned. Furthermore, the incident affected many people.
According to media sources, a cryptocurrency exchange based in Hong Kong named Coinsuper has suspended all withdrawal requests altogether. This has caused a lot of inconvenience and concern to their users. Coinsuper is the only cryptocurrency exchange in China. Furthermore, they are the only one who has a government license to operate openly. Despite this, it did not stop the incident from happening.
Coinbase was established in November 2017. It is a cryptocurrency exchange based in Hongkong. A former senior executive of UBS Group AG established this cryptocurrency exchange.
A study of posts on the exchange’s primary Telegram chat group reveals that clients have been unable to withdraw funds from their accounts since late November. This was according to a report by Bloomberg.
The incident resulted to a need for more strict regulations arises.
As a result of the public backlash over Coinsuper, the Hong Kong authorities are compelled to enforce more stringent regulations.
The incident might cause more strict regulations in the future because of this incident. Pantera Capital is the one backing Coinsuper. Karen Chen runs the company. She is the one who previously served as president of UBS China Inc.,
Cointelegraph reported in September 2021 that a top executive for the city state’s Securities and Futures Commission stated that further action was needed to combat cryptocurrency fraud.
Cryptocurrency fraud is still a new issue for some. To combat future situations such as this from happening, there’s a need for further action to combat cryptocurrency fraud. Furthermore, future guidelines on digital asset trading in the special administrative territory would be provided.
Coinsuper failed to react to concerns regarding failed withdrawals.
After apparently ceasing to react to concerns about failed withdrawals on Coinsuper’s Telegram discussion group last month, the administrator reappeared last week. The administrator requested to consumers provide their email addresses. This contact information would be the key to helping them in their transactions.
Unfortunately, some clients complained at the time that they had not received any follow-up even after providing their contact information. This shows the lack of proper control and assurance.
According to analytics firm Nomics, the exchange processed only $17.4 million in volume in the last 24 hours. There is a significant decrease from their past data. Previously the company has exchanged data from a daily peak of $1.3 billion reached in late 2019.
According to a news outlet, an investor in Coinsuper who spoke to Bloomberg recently stated that they have canceled their $1 million investment in the exchange. After losing contact with the exchange’s management team six to eight months ago, the venture capitalists claimed that chairman and CEO Karen Chen had ceased responding to messages on WeChat. Several employees left the company between July and December, according to reports.