TL;DR:
- JuCoin is under heavy scrutiny following reports of withdrawal delays and on-chain investigator ZachXBT’s questions about its official reserves.
- The exchange reported reserves of approximately $511 million, but some analysts note that assets listed as USDC and USDT operate on JuChain, its own network.
- The concentration of tokens in a single reserve wallet and the lack of independent verification fuel doubts about the exchange’s real liquidity.
The cryptocurrency exchange JuCoin is under scrutiny after on-chain investigator ZachXBT exposed user complaints about withdrawal delays and raised doubts about the composition of the reserves declared by the platform.
According to reports published by Wu Blockchain, multiple users experienced difficulties accessing their funds over the past week. In response to inquiries, JuCoin attributed the issues to technical updates and internal restructuring processes, though that explanation failed to ease the concerns of those seeking concrete guarantees about their assets.
ZachXBT Flags JuCoin Over Withdrawal Issues and Reserve Concerns
ZachXBT said multiple users have reported withdrawal issues on JuCoin over the past week. He also questioned the exchange’s reported $511 million reserves, alleging most consist of USDC and USDT issued on its own… pic.twitter.com/P5aWCpCY6h
— Wu Blockchain (@WuBlockchain) June 7, 2026
The Problem Behind JuCoin’s Reserves
The most sensitive aspect of the case involves the reserves declared by JuCoin, which amount to approximately $511 million. ZachXBT questioned the nature of those assets, as a large portion appears listed as USDC and USDT within JuChain, the exchange’s own network.
This distinction is crucial: tokens that carry the names of recognized stablecoins but circulate on alternative networks do not necessarily carry the backing, liquidity, or issuance guarantees of Circle or Tether. In this case, the assets could be tokens issued by the project itself, which would considerably alter their real value as backing for user funds.
Adding to this is another factor that deepened doubts about the exchange: reports indicated that the majority of these tokens are concentrated in a single reserve wallet, with a very limited number of holders across the entire network. That concentration complicates any attempt at independent verification and raises questions about whether the declared figures reflect genuinely liquid assets or simply accounting balances that are difficult to audit.
To date, there is no public evidence that JuCoin is insolvent. However, the combination of operational delays and reserves of questionable composition has unsettled the community and cast doubt on the exchange’s transparency.
