According to reports, a cryptocurrency exchange in Hong Kong has reportedly stopped all withdrawal requests. Coinsuper is China’s only government-licensed cryptocurrency company, founded in November 2017 by a former UBS executive.

Bloomberg’s report suggestion The exchange’s customers have been unable to withdraw funds since late November, according to a review of messages on the exchange’s main Telegram chat group.

Five customers reportedly complained to the police after token withdrawals apparently stopped, leaving them unable to recover about $55,000 in cryptocurrency and money.

I called the Consulate General of Japan in Hong Kong to inquire about the withdrawal of Supercoin Exchange and was asked to report to the Hong Kong Police Force, but this time I went to the Western District Police District of the Hong Kong Police Force.I have provided information #CoinSuper pic.twitter.com/GuXBLt0Nm2

— Fire Fist FX, Cross Border Currency “New”[PEGASUS WORLD KIT](@PegasusWorldKit) January 4, 2022

The public outcry at Coinsuper, which is backed by Pantera Capital and run by Kailun Chen, who was formerly president of UBS China, could force Hong Kong authorities to impose stricter regulations.As Cointelegraph reported in September 2021, a senior executive with the city’s National Securities and Futures Commission stated that greater Action needed to combat cryptocurrency fraud, suggesting future guidance on digital asset transactions in the Special Administrative Region.

Last month, administrators of Coinsuper’s Telegram discussion group allegedly stopped responding to inquiries about failed withdrawals, then resurfaced last week, asking customers to provide their email addresses. Some customers said at the time that even when details were provided, there was no follow-up.

The exchange processed around $17.4 million in trading volume over the past 24 hours, down from a daily peak of $1.3 billion at the end of 2019, according to to the data company Nomics.

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A venture capitalist backing Coinsuper told Bloomberg that they have completely pulled the plug on their $1 million investment in the exchange. The VCs said they lost contact with the exchange’s management team six to eight months ago, and chairman and CEO Kailun Chen stopped responding on WeChat. According to reports, several workers left the company between July and December.