Websea, a cryptocurrency exchange that recently gained attention at the Hong Kong Web3 Conference, is under scrutiny as users report being unable to withdraw funds. On April 27, multiple users on X highlighted that Websea has closed its C2C channels, sparking fears of a potential rug pull. The platform initially restricted withdrawals before completely disabling its C2C services, leading to panic selling of USDT at half its usual market value on secondary markets. As of now, Websea has not released an official statement regarding the situation.