Cryptocurrency exchange Websea is under fire after users reported severe withdrawal restrictions shortly after the platform’s high-profile appearance at the Hong Kong Web3 Conference. Social media channels are flooded with complaints from users unable to access their funds, with some claiming the problem mirrors a similar incident that occurred two years ago.
Event Recap: Post-Conference Withdrawal Freeze
Multiple users have taken to platforms like X and Telegram to report that Websea unexpectedly tightened withdrawal policies immediately after the conference. One user noted, “Deposits go through instantly, but withdrawals are blocked everywhere.” In response, Websea issued a statement confirming that the restrictions are temporary and part of an ongoing financial audit. “To ensure ledger accuracy and asset security during the audit, we have imposed compliance checks on withdrawals,” the exchange explained.
User Anger: Déjà Vu for Websea
This isn’t Websea’s first brush with withdrawal controversy. Long-time users recall a similar episode in 2024, when the exchange also froze withdrawals after a major event, taking weeks to fully restore service. The recurrence has eroded trust, with many accusing the platform of using the “audit” excuse to delay payouts. Some users have even threatened legal action if funds are not released soon.
Official Response: Off-Chain Requests Refunded, Update by April 30
Amid mounting pressure, Websea clarified that all pending withdrawal requests not yet processed on-chain will be refunded directly to users’ accounts, eliminating the need to resubmit. The exchange also pledged to release a detailed audit report and a timeline for resuming withdrawals by April 30, 2026. Websea reiterated that user fund security remains its top priority and that full withdrawal functionality will be restored as soon as the audit concludes.
Market Impact: WBS Token Tumbles Over 10%
The controversy has taken a toll on Websea’s native token WBS, which plummeted 10.98% in 24 hours, according to market data. The token is now trading near its recent low, reflecting deep bearish sentiment. Analysts warn that if the audit reveals significant issues or if the update is delayed, WBS could face further downside pressure.
Industry Perspective: Transparency Still Lacking
Websea’s situation highlights a recurring problem among crypto exchanges: the lack of transparency around withdrawal policies, especially after marketing-heavy events. Industry observers argue that exchanges should proactively communicate risks and provide sufficient notice before implementing restrictions. Whether Websea can deliver a convincing audit report by April 30 will be critical in determining whether it can regain user trust.