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The Coinsuper exchange, supported by Pantera Capital, has stopped withdrawing for no reason

January 8, 2022 - Around 2 mins mins to read

Coinsuper, a Hong Kong-based exchange backed by Pantera Capital, has been criticized after clients reported it hadn’t been able to withdraw funds or tokens since November, with several people reporting problems with law enforcement.

The Coinsuper exchange, supported by Pantera Capital, has stopped withdrawing for no reason

Coinsuper Exchange stops withdrawals

Reports suggest that the Coinsuper exchange has frozen users’ funds and crypto assets, according to a Bloomberg investigation on Friday.

Five customers alerted police after being unable to withdraw their money in November, preventing them from retrieving tokens and about $ 55,000 worth of cash.

While only 5 users have reported the situation to the police so far, the amount actually frozen could be much higher. Throughout 2021, the daily trading volume on Coinsuper remained consistently above $ 20 million. However, in October trading volume began to decline, falling to $ 2.59 million.

Hong Kong currently has an “opt-in” approach to regulation, which allows exchanges to seek listing by the Securities and Futures Commission, but this is optional. According to ONC Lawyers advisor Joshua Chu, many exchanges consider opt-in compliance to be too strict and restrictive, which means that a few have to go through the right scrutiny and deliberation.

US wealth management firm Pantera Capital was one of Coinsuper’s earliest investors and participated in the exchange’s 2018 Series A financing round for an undisclosed amount. Despite the recent controversy, Pantera Capital is still listing Coinsuper among its investments on its website.

Coinsuper’s asset freeze highlights the dangers of leaving coins and tokens on centralized exchanges. AscendEX, a Singapore-based exchange, was recently robbed by hackers for around $ 77.7 million. Although AscendEX has given assurances to its customers that it will receive compensation, the hack will likely affect users’ ability to withdraw funds.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

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Capital

Coinsuper

exchange

Pantera

reason

stopped

supported

withdrawing

Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
Market

The Coinsuper exchange, supported by Pantera Capital, has stopped withdrawing for no reason

Coinsuper, a Hong Kong-based exchange backed by Pantera Capital, has been criticized after clients reported it hadn’t been able to withdraw funds or tokens since November, with several people reporting problems with law enforcement.

The Coinsuper exchange, supported by Pantera Capital, has stopped withdrawing for no reason

Coinsuper Exchange stops withdrawals

Reports suggest that the Coinsuper exchange has frozen users’ funds and crypto assets, according to a Bloomberg investigation on Friday.

Five customers alerted police after being unable to withdraw their money in November, preventing them from retrieving tokens and about $ 55,000 worth of cash.

While only 5 users have reported the situation to the police so far, the amount actually frozen could be much higher. Throughout 2021, the daily trading volume on Coinsuper remained consistently above $ 20 million. However, in October trading volume began to decline, falling to $ 2.59 million.

Hong Kong currently has an “opt-in” approach to regulation, which allows exchanges to seek listing by the Securities and Futures Commission, but this is optional. According to ONC Lawyers advisor Joshua Chu, many exchanges consider opt-in compliance to be too strict and restrictive, which means that a few have to go through the right scrutiny and deliberation.

US wealth management firm Pantera Capital was one of Coinsuper’s earliest investors and participated in the exchange’s 2018 Series A financing round for an undisclosed amount. Despite the recent controversy, Pantera Capital is still listing Coinsuper among its investments on its website.

Coinsuper’s asset freeze highlights the dangers of leaving coins and tokens on centralized exchanges. AscendEX, a Singapore-based exchange, was recently robbed by hackers for around $ 77.7 million. Although AscendEX has given assurances to its customers that it will receive compensation, the hack will likely affect users’ ability to withdraw funds.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

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