Cryptocurrency exchange Coinsuper customers in Hong Kong say they have not been able to withdraw funds or tokens from the platform for several weeks, with some of them now reporting the matter to law enforcement.
As Bloomberg News reported on Friday (January 7), dozens of Coinsuper clients have been banned from the exchange since the end of November, while five clients told the news service that they reported to police after withdrawals were frozen, leaving close to $55,000. Cash and tokens stuck in their account.
A venture capitalist who backed the exchange with $1 million told Bloomberg that they wrote off their investments, after losing contact with his management team in mid-2021, while President and CEO Karen Chen suspended contact on WeChat.
According to Bloomberg, data from the Hong Kong Companies Register shows that many employees left Coinsuper in the second half of last year.
Founded in 2017 and backed by Pantera Capital, Coinsuper bills itself as an “exchange of cryptocurrency to USD and USD to cryptocurrency.”
Read more: Hong Kong residents embrace encrypted payments
Hong Kong residents are starting to embrace crypto payments, PYMNTS reported last month. Nearly a fifth of the 800 people who responded to a recent survey said they used cryptocurrency to send or receive money, buy goods or accept payments.
This survey, conducted by Visa, also shows that about a third of people who own crypto plan to switch to a bank that provides cryptocurrency services. About 10% of respondents said they bought cryptocurrency as an investment rather than a transaction.
Meanwhile, 88% said they are interested in crypto cards to convert and spend their digital currency in stores, and 86% want a service that allows users to earn cryptocurrency as a reward for spending. And 43% said they view crypto as a way to be part of their “financial way of the future,” while 32% are looking to diversify their investments.