ZachXBT Issued a Warning About a Cryptocurrency Exchange: “It Has Started Acting Suspiciously”

ZachXBT, a well-known on-chain researcher in the cryptocurrency world, has issued new warnings about JuCoin, a cryptocurrency exchange based in East Asia.

ZachXBT reported that numerous users experienced withdrawal problems on the platform over the past week, raising serious questions about the exchange’s reserves and institutional transparency.

According to ZachXBT, the first warning about JuCoin was issued in March 2025. At the time, the researcher argued that despite the exchange being a platinum sponsor at the Token2049 Singapore event, it carried various signs of risk. A recent reserve analysis claims that JuCoin’s stated total reserve figure of $511 million may not reflect reality. According to the analysis, a large portion of the reserves consists of USDC and USDT tokens issued on the exchange’s own blockchain, JuChain, and the collateral structure behind these assets is not clearly explained.

The researcher also noted that JuCoin’s ownership structure was not transparent. ZachXBT stated that the publicly disclosed team did not appear to have real control over the company, and that this was similar to some offshore exchange models where the real managers remain hidden.

JuCoin explained that the delays in withdrawal transactions were due to platform upgrades and a restructuring process. It is also noteworthy that the company has undergone multiple rebranding processes in the past under the names Jubi, JuCoin, and Joy Universe/Ju.

On the other hand, JuDAO, which is said to be connected to the JuCoin ecosystem, has also been in the news in recent years due to various security incidents. It was reported that approximately $225,000 worth of assets were lost in April 2026 due to a smart contract vulnerability, while in September 2025, it was claimed that approximately $20 million worth of assets became inaccessible due to a misconfigured proxy contract.

ZachXBT also claimed that at least $5 million in funds related to the Bybit attack in 2025, which was allegedly linked to North Korea, were transferred via JuCoin. He added that this is noteworthy given that JuCoin recently announced its willingness to provide financial support to Bybit up to 1,000 BTC.

The researcher stated that one of the most fundamental criteria in evaluating centralized cryptocurrency exchanges is complete transparency in ownership structure and operation in strong regulatory jurisdictions, arguing that JuCoin fails to meet both of these criteria. JuCoin has not yet released a comprehensive response to these allegations.

*This is not investment advice.