JuCoin Exchange Raises Red Flags Among On-Chain Researchers

ZachXBT, a prominent figure in the on-chain research community, has sounded the alarm regarding JuCoin, a cryptocurrency exchange based in East Asia.

The researcher's warnings stem from an analysis of the exchange's reserves and ownership structure, which appear to be shrouded in mystery. According to ZachXBT's findings, JuCoin's stated total reserve figure of $511 million may not reflect reality, with a significant portion consisting of USDC and USDT tokens issued on the exchange's own blockchain.

The researcher also pointed out that JuCoin's ownership structure is opaque, with the publicly disclosed team seemingly lacking real control over the company. This lack of transparency has raised concerns about the exchange's legitimacy and accountability.