Customers of a crypto exchange in Hong Kong reportedly say their funds are frozen

• Customers of a cryptocurrency exchange in Hong Kong say they haven't been able to withdraw their funds, Bloomberg reported.
• Five customers said they filed police reports after their funds were apparently frozen.

Customers of a cryptocurrency exchange in Hong Kong say they aren't able to withdraw their money or tokens from the exchange and some have filed reports to the police about the matter, Bloomberg reported Friday.

Dozens of clients of exchange Coinsuper haven't been able to make withdrawals since late November, the report said, citing a review of messages on the company's official Telegram chat. Five customers told the news agency they filed police reports after their withdrawals were apparently frozen, rending them unable to retrieve about a combined $55,000 of tokens and cash.

Bloomberg reported that Coinsuper executives didn't respond to calls and messages seeking comment. A Hong Kong police spokesperson, responding by email to the news agency's inquiry about the Coinsuper complaints, said it's investigating one case where a person who purchased cryptocurrency "via an investment company" hadn't been able to withdraw her funds since December.

A partner at one of Coinsuper's venture capital backers, who asked that he and his firm not be identified, said it wrote off its entire investment of roughly $1 million.

Coinsuper is run by former UBS China Inc. President Karen Chen, the report said, and its trading app was still operating. The matter may stoke calls for broader regulatory oversight in Hong Kong as the city uses an "opt-in" regulatory structure for crypto exchanges, or exchanges can apply to be regulated, the report said.

The report noted that in November 2020, the head of Hong Kong's securities watchdog said it would propose a licensing regime for crypto-trading platforms.