ZachXBT Raises Alarm Over JuCoin Withdrawal Problems and Reserve Doubts

TLDR:

• ZachXBT flagged JuCoin after multiple users reported withdrawal problems over the past week.
• JuCoin’s $511M reserves are allegedly overstated, mostly backed by self-issued USDC and USDT.
• JuDAO suffered a $20M loss in 2025 and a $225K smart contract exploit in April 2026.
• At least $5M linked to the Bybit DPRK hack was reportedly moved through JuCoin in 2025.

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On-chain investigator ZachXBT has flagged JuCoin, an East Asian centralized exchange, over growing user complaints about withdrawal issues. The alert comes alongside serious questions about the platform’s reported $511 million in reserves.

ZachXBT further pointed to a pattern of security incidents, opaque ownership, and connections to illicit fund flows — raising broader concerns about the exchange’s credibility and financial health as the crypto community takes notice.

Reserve Figures and Ownership Raise Red Flags

Multiple JuCoin users reported withdrawal problems over the past week, prompting ZachXBT to go public with his findings.

The investigator noted he had first flagged Ju back in March 2025, when the exchange appeared as a platinum sponsor at Token 2049. He observed numerous red flags at that time and issued a public warning through his Telegram channel.

A separate analysis by researcher darcyari directly questioned JuCoin’s proof-of-reserves data. The report alleged that the self-reported $511 million figure was likely overstated.

Most of the reserves reportedly consisted of USDC and USDT issued on JuChain, the exchange’s own blockchain, without verifiable external backing.

ZachXBT also raised concerns about JuCoin’s corporate structure. The publicly listed team does not appear to actually control the platform.

That pattern is commonly associated with offshore exchanges where the real operators, often based in China, remain hidden from public view.

JuCoin has rebranded several times in the past, moving from Jubi to JuCoin to Joy Universe and later Ju. The exchange publicly attributed current withdrawal delays to platform upgrades and ongoing asset restructuring, including a merger with a publicly listed company.

Security Incidents and Illicit Fund Flows Add to Concerns

Beyond reserve and ownership issues, JuCoin’s broader ecosystem has faced multiple security failures. JuDAO suffered a $20 million loss in September 2025 after a proxy contract deployment incorrectly left 77 million POL tokens stuck and unrecoverable.

More recently, JuDAO was exploited for $225,000 in April 2026 due to a smart contract vulnerability. The incident was flagged by blockchain security firm Exvul, adding further scrutiny to the platform’s technical infrastructure and risk management standards.

ZachXBT also noted that at least $5 million tied to the Bybit DPRK hack was routed through JuCoin in 2025. That finding drew attention given that just weeks earlier, the JuCoin team had publicly offered up to 1,000 BTC, approximately $95 million, in financial support for Bybit following that attack.

A basic transparency test for centralized exchanges involves verifiable ownership and registration in reputable jurisdictions.

By both measures, JuCoin falls short, according to ZachXBT. The community has been advised to exercise caution, particularly as Token 2049 approaches and event sponsorships bring additional exposure to lesser-vetted platforms.

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