JuCoin faces scrutiny over withdrawals and reserve doubts

A cryptocurrency exchange is facing intense scrutiny after users reported being unable to withdraw funds and a prominent investigator questioned the legitimacy of its claimed financial reserves. The platform, JuCoin, has attributed the delays to technical upgrades, but concerns are mounting over its financial health and transparency.

Over the past week, multiple users of the East Asian exchange have reported difficulties accessing their funds. Onchain investigator ZachXBT brought these complaints to public attention, highlighting the withdrawal issues and casting doubt on the exchange's self-reported reserves of approximately $511 million. The core allegation is that a significant portion of these reserves consists of tokens labeled as USDC and USDT that are issued on JuChain, the exchange's own proprietary blockchain, rather than the official, externally-backed stablecoins from Circle or Tether.

Analysts note that assets issued on a private network lack independent verification and may not carry the same liquidity or backing guarantees. Further complicating the picture, reports indicate these tokens are concentrated in a single reserve wallet with very few holders across the...