According to reports, a Hong Kong cryptocurrency exchange has had its funds frozen

<p> Customers of a Hong Kong-based cryptocurrency exchange claim they are unable to withdraw funds or tokens from the exchange, and at least seven have reported the issue to police.</p> <p>According to a review of messages on Coinsuper's official Telegram chat, dozens of clients have been unable to make withdrawals from the company since late November.</p> <p>Five customers told Bloomberg News that they had filed police reports after their withdrawals were apparently frozen, leaving them unable to retrieve approximately $55,000 in tokens and cash.</p> <p>The uproar over Coinsuper, which is backed by Pantera Capital, may fuel calls for more regulatory oversight in Hong Kong. In November 2020, the city's securities watchdog announced that it would propose a licensing regime for all crypto-trading platforms, a strategy that rival financial hub Singapore is also pursuing.</p> <p>Calls and messages seeking comment from Coinsuper executives went unanswered. In response to a Bloomberg enquiry about the Coinsuper complaints, a Hong Kong police spokesperson said via email that the department is looking into one case in which a person who purchased cryptocurrency "via an investment company" has been unable to withdraw her funds since December.</p> <p>The administrator of Coinsuper's Telegram chat stopped responding to questions about failed withdrawals in late November, then reappeared this week to ask affected users to provide their email addresses.</p> <p>In interviews, some clients stated that there was no follow-up, and the administrator did not respond to messages from Bloomberg.</p> <p>VOLUME DROP</p> <p>Terry Chan, a financial industry worker in the city, began using the platform in November 2020 because it was "quite large in Hong Kong" at the time.</p> <p>In early December, he attempted to withdraw US$4,000 from the exchange after noticing that trading was becoming less liquid. On January 5, he and two other Coinsuper customers filed a group complaint with Hong Kong police.</p> <p>According to crypto dat