According to a post by ZachXBT, users of the East Asian exchange JuCoin have reported withdrawal issues over the past week. Its proof-of-reserves published on X claims total reserves of approximately $511 million, but the majority consist of USDC and USDT issued on its own blockchain, JuChain, raising doubts about the actual backing. JuCoin’s ownership structure is opaque, and the publicly listed team appears not to be the actual controller. JuCoin attributes the delays to upgrades and restructuring and has changed its name multiple times. Additionally, disclosures reveal that JuDAO suffered a $225,000 loss in April 2026 due to a smart contract vulnerability and had 77 million POL tokens locked in September 2025 due to an erroneous proxy contract deployment, resulting in approximately $20 million in losses.
ZachXBT Warns of JuCoin Withdrawal Issues and Concerns Over Reserve Transparency
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Summary
ZachXBT highlighted on-chain news regarding JuCoin, an East Asian exchange, where users encountered withdrawal issues last week. According to AiCoin, JuCoin claimed $511 million in reserves, primarily consisting of USDC and USDT on its JuChain, raising doubts about its actual backing. Ownership remains unclear, and the publicly listed team may not be the true controllers. JuCoin attributed the delays to system upgrades and rebranding efforts. A related entity, JuDAO, lost $225,000 in April 2026 due to a smart contract vulnerability and $20 million in September 2025 following a proxy contract error. Amid growing developments surrounding the Federal Reserve, these incidents have intensified concerns about transparency and stability.
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