Hong Kong-based Bitcoin exchange Coinsuper, founded in 2017, has stopped customers from withdrawing cryptocurrencies. According to the development, fiat and crypto withdrawals cannot be made on the stock market, and 7 customers of the stock exchange reported the incident to the police. He suspects that Coinsuper is plotting an escape.
Users who could not take action reported the incident to the police
Bloomberg Crypto says that Coinsuper exchange has stopped withdrawals from hundreds of customers since November. The rumors were confirmed from the company’s official chat in the Telegram group. According to the notice, customers of the Bitcoin (BTC) exchange will not be able to make withdrawals in fiat or cryptocurrencies. Thereupon, 7 users who traded on the stock market reported the incident to the police. Users share the victimiyedollar series with the press.
Exchange victims shared with Bloomberg News that they could not move $55,000 and crypto funds. Local police reported that they are investigating the case of a customer who purchased cryptocurrencies through “an investment company” and has not been able to get his money back since December. Apart from that, no further comment was received from the police regarding the incident, and the Coinsuper exchange did not make any statement.
Why did the bitcoin exchange stop the funds?
This is thought to be due to the upcoming policy change regarding crypto exchanges planned by Hong Kong regulators. In November 2021, Hong Kong’s regulatory framework stated that it would recommend that all crypto trading companies must obtain licenses to operate; The same approach is followed by Singapore.
Coinsuper was founded by Zhang Zhenxin in 2017, but the Chinese boss died two years later. After UBS China’s Karen Chen joined the company in 2018, an undisclosed amount of exchange users’ funds were raised in 2020. In the latest annual report, Chen is listed as the company’s largest shareholder. Coinsuper’s social media accounts have been inactive since December 1, 2021.