ZachXBT flags JuCoin as 3.13 million USDT moved during withdrawal suspension

Criticism of the exchange widened after DarcyAri alleged 36 transfers from a JuCoin proof-of-reserves address to destinations including Binance and Cobo while users could not withdraw funds.

USDT

Summary

JuCoin is facing scrutiny after ZachXBT flagged withdrawal issues and reserve concerns, while FlashRescue co-founder DarcyAri alleged that 3,132,140.83 USDT was moved in 36 transactions during the withdrawal suspension. According to DarcyAri’s X post, the funds were sent from a JuCoin proof-of-reserves address beginning with 0x0d14 to several destinations, including a Binance deposit address, a high-frequency distribution address, and a Cobo address. The episode highlights a recurring pressure point in crypto markets: users and analysts look for transparency around customer withdrawals, asset backing and independent verification when assessing an exchange’s financial health.

Terms & Concepts
  • proof-of-reserves: Evidence, often on-chain, presented to show assets held to back customer balances
  • USDT: Dollar-pegged stablecoin issued by Tether
  • third-party audits: Independent reviews of financial or operational records