ZachXBT Warns of Withdrawal Issues at JuCoin, Raising Fresh Questions About Reserve and Ownership Transparency
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ZachXBT Warns of Withdrawal Issues at JuCoin, Raising Fresh Questions About Reserve and Ownership Transparency
On-chain investigator ZachXBT stated that JuCoin, an East Asian centralized exchange, has recently been reported by multiple users to have experienced abnormal withdrawal issues over the past week. Analysis indicates that in its Proof of Reserves published on X, JuCoin self-reported total reserves of approximately $511 million—most of which consist of USDC and USDT issued on its proprietary blockchain, JuChain—leaving the actual backing unclear.
Navigating Web3 tides with focused insightsTechFlow News, June 7: On-chain investigator ZachXBT reported that Ju (JuCoin), a centralized exchange based in East Asia, has recently faced multiple user complaints over abnormal withdrawal issues within the past week. Analysis indicates that, according to Ju’s self-published Proof of Reserves on X, its total reported reserves amount to approximately $511 million—yet the majority consists of USDC and USDT issued on its proprietary blockchain, JuChain, leaving the actual backing unclear.
Public information further reveals opaque ownership structure, with the publicly listed team appearing not to be the actual controlling party. Ju previously attributed delays to system upgrades and restructuring and has undergone multiple rebrandings.
Additionally, it was disclosed that JuDAO suffered a $225,000 loss in April 2026 due to a smart contract vulnerability, and in September 2025, an erroneous deployment of a proxy contract allegedly led to the locking of 77 million POL tokens, resulting in losses of approximately $20 million.
