JuCoin is facing new scrutiny after on-chain investigator ZachXBT reported user complaints about withdrawal delays and questioned the exchange’s reserve claims.
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- ZachXBT said JuCoin users reported withdrawal delays over the past week, raising concerns about exchange risks.
- JuCoin’s reported reserves are facing questions over USDC and USDT issued on its JuChain.
- JuCoin blamed delays in upgrades and restructuring while critics pointed to previous JuDAO incidents.
Wu Blockchain reported that several users raised withdrawal issues over the past week. ZachXBT also questioned JuCoin’s reported reserves of $511 million, saying that much of the value appears to be tied to USDC and USDT issued on JuCoin’s JuChain.
ZachXBT reports JuCoin withdrawal issues
ZachXBT said that many users have reported problems withdrawing funds from JuCoin. The complaints arrived during a period of additional concern about central exchange reserves and users’ access to funds.
JuCoin attributed the delay to platform upgrades and restructuring, according to Wu Blockchain. The exchange’s explanation did not completely end concerns because users were also asking about the reserve quality.
“Many users reported withdrawal issues on JuCoin over the past week,” Wu Blockchain said, citing ZachXBT comments.
The issue is still evolving. There has been no public evidence that JuCoin is insolvent, but withdrawal delays often quickly attract attention because users rely on exchanges to process funds on demand.
Reserve Claims Face Questions Over JuChain Stablecoin
The biggest concern is JuCoin’s announced reserve figure of $511 million. ZachXBT asked whether the reserves are backed by clear third-party assets.
A separate report linked to PANews stated that JuCoin had a reserve ratio of 123.81%. It also said that the assets listed as USDC and USDT on JuChain were tokens issued by the project, and were not clearly linked to stablecoins issued by Circle or Tether.
This claim is important because a token named USDC or USDT on a private or smaller chain may not carry the same support as official stablecoins unless verified by a supported issuer or bridge.
The report also said that the reserve address holds almost all of these tokens, with only a small number of holders. This raised further questions about whether the reserve figure reflects true liquid assets.
Past JuDAO incidents add pressure
Wu Blockchain also cited ZachXBT’s observation that JuDAO suffered a $20 million incident in 2025 and a $225,000 exploit in April 2026.
These past events have added pressure to the debate about withdrawal. Users often look to past security events when judging whether an exchange or associated ecosystem can manage the stress.
JuCoin said the current delay is related to upgrades and restructuring. This explanation may be correct, but users still need clear timelines and proof that withdrawals can resume normally.
In exchange crises, communication is important. Unclear updates can increase fear even before any full technical or financial review is completed.
Exchange reserves remain a concern for the market
The JuCoin case comes as traders remain sensitive to exchange reserve claims. Formerly Crypto.news I mentioned Huge withdrawal pressure after Bybit hack, showing how quickly users moved funds during the squeeze.
Reserve reporting can help build trust, but only when users can verify assets, issuers, chains, and wallet controls. Self-issued assets may need more explanation than widely traded mainnet assets.
Moreover, JuCoin faces two separate questions. Users want withdrawals to be processed, and the market wants clearer evidence behind the $511 million reserve claim.
