No Hack Found, No Answers: CoinUp Fraud Allegations Deepen

A single post on X from Binance co-founder Yi He was enough to send a little-known crypto exchange into crisis mode. The CoinUp fraud allegations that erupted on June 24 triggered an immediate panic among the platform’s users, sent the CPX token into a sharp tailspin, and forced the exchange’s founder into damage-control mode within hours.

Key takeaways

• Binance co-founder Yi He accused a person named Zhu Pan of impersonating her to scam Tron founder Justin Sun, with Zhu Pan allegedly connected to a project listed on CoinUp.
• CoinUp denied that Zhu Pan is part of its management or core operations and rejected all exit scam speculation.
• The CPX token experienced a sharp price drop driven by concentrated selling pressure, but CoinUp found no evidence of hacking, data breach, or system exploitation.
• Deposits, withdrawals, and trading remained fully functional throughout the incident.
• As of June 25, 2026, CoinUp has not identified who was behind the concentrated CPX sell-off, and the investigation timeline remains open.

Fraud Allegations Trigger Market Panic Around CoinUp

Yi He’s accusations hit the market fast. The Binance co-founder posted on X alleging that Zhu Pan had impersonated her in a scheme targeting Tron founder Justin Sun. Sun himself confirmed the allegation in a repost, calling on the broader industry to “collectively resist this fraudulent behavior.” The combination of two high-profile names amplified the story almost instantly.

The connection to CoinUp was enough to ignite panic in the exchange’s community. Users began questioning whether Zhu Pan held a leadership role within the platform and, more urgently, whether their funds were safe. What followed was a concentrated wave of selling that hit the CPX/USDT trading pair, producing what CoinUp would later describe as a “short-term sharp fluctuation.”

This is the kind of crisis that can define or destroy a crypto project. When a Binance co-founder publicly names an individual in connection with a fraud attempt — and that individual is then linked, even loosely, to a smaller exchange — the reputational blast radius is enormous. Smaller platforms depend heavily on community trust, and that trust can evaporate in minutes on social media.

CoinUp’s Official Response and Denials

Distancing from Alleged Impersonator Zhu Pan

CoinUp’s response was direct: Zhu Pan is not a member of the CoinUp platform and does not participate in its core operations or management. The exchange described him as affiliated with a project that is listed on the platform — not someone embedded in its leadership or daily operations. According to CoinUp, its core business, risk management, and operational decisions are handled independently by its own team.

“Any claims directly linking his personal behavior to the CoinUp platform are inaccurate interpretations,” the exchange stated publicly.

Rejection of Exit Scam Claims and Legal Threats

Beyond distancing itself from Zhu Pan, CoinUp pushed back hard against the exit scam narrative that spread across social media. The platform strongly denied any involvement in fraudulent activity and announced it would pursue legal action against any social media accounts found spreading false information. It’s an aggressive posture — one that signals the exchange is not willing to absorb the reputational hit quietly.

Investigation Findings and Operational Status During Crisis

No Evidence of Hacks or System Exploits

After conducting what it described as extensive research, CoinUp concluded there was no evidence of a hacking attack, data breach, or exploitation of system vulnerabilities. The platform stated that its wallet infrastructure, account systems, and asset custody “remain secure and stable.”

Normal Functioning of Deposits, Withdrawals, and Trading

Deposits, withdrawals, and trading continued operating normally throughout the incident. For users watching a token price collapse in real time, that operational confirmation matters — it separates a price shock from a platform failure, at least according to CoinUp’s own account.

Unidentified Causes Behind CPX Price Drop and Concentrated Sell-Off

Here is where the story gets uncomfortable. Despite ruling out technical breaches, CoinUp has not identified who was behind the concentrated selling of CPX tokens, and as of June 25, 2026, has provided no timeline for completing its investigation. The exchange acknowledged that many sellers moved simultaneously, driving the price down sharply — but whether that reflected coordinated market manipulation, opportunistic panic selling, or something else entirely remains an open question.

That gap matters significantly. Clearing a platform of a hack is one thing. Explaining why a token collapsed without identifying the actors responsible is another. For CPX holders still sitting with losses, the absence of answers is its own kind of damage.

Founder Queenie Li’s Commitment to Transparency

On June 24, CoinUp founder Queenie Li took to X directly, acknowledging that many users were feeling anxiety, confusion, and disappointment following Yi He’s posts and the resulting chaos. CoinUp’s official account reinforced the message, stating that her post “speaks to where CoinUp stands and what we are committing to next” and that user trust “means everything.”

To back up the words, the exchange announced an X Space session scheduled for June 25 at 20:00 UTC+8, where the team planned to address user concerns and discuss the employment-related issues at the center of the controversy. The intent was clear: get in front of the community before the narrative hardened further.

Whether a public Q&A session can close the trust gap depends largely on what CoinUp can actually deliver. Pledging transparency is straightforward. Producing answers about an unresolved investigation — who sold, why, and whether it was coordinated — is considerably harder. Until those answers exist, the CoinUp fraud allegations story remains unfinished, and CPX holders remain in the dark about what really moved the market on June 24.

FAQ

Who is Zhu Pan and what was he accused of?

Zhu Pan was accused by Binance co-founder Yi He of impersonating her in order to scam Tron founder Justin Sun. CoinUp stated he is affiliated with a project listed on its platform but is not a member of its management or core operations team.

Did CoinUp admit any wrongdoing related to the fraud allegations?

No. CoinUp denied that Zhu Pan is part of its management or core operations, rejected all exit scam claims, and announced plans to pursue legal action against anyone spreading false information about the platform.

What caused the sharp drop in the CPX token price?

The exact cause remains unclear. CoinUp reported concentrated selling pressure on the CPX/USDT trading pair but found no evidence of hacking, data breach, or system exploitation. The identity of those behind the sell-off has not been established as of June 25, 2026.

How is CoinUp addressing user concerns over the allegations?

Founder Queenie Li publicly acknowledged user anxiety on June 24 and pledged transparency. CoinUp also announced a public X Space session on June 25 at 20:00 UTC+8 to discuss user concerns and the issues surrounding the controversy.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.