JuCoin $511 million Reserve Proof Questioned by Community, On-Chain Assets Mostly JuChain Native Wrapped Tokens

BlockBeats News, June 6th, Web3 security company Salus CMO Darcy disclosed an investigation into the asset reserve of the JuCoin platform, stating that the "USDC" on JuChain is an ERC20 deployed by the project team that can be arbitrarily minted, not a genuine asset issued by Circle.

The official PoR page of JuCoin disclosed a total reserve of about $5.11 billion and a 123.81% reserve ratio, mainly based on six types of assets: USDT, BTC, ETH, USDC, BNB, and SOL. The CoinMarketCap Ju.com page also links the related assets to the same address 0x0D141Fd7a9Ed772678522933D424E10eB4CAc48d, indicating that the data is reported directly by the exchange platform.

Further investigation on the JuChain explorer revealed that the USDC, USDT, BTCB, ETH, BNB, and SOL held by this address are all ERC-20/BridgeToken mapped assets on JuChain, not the corresponding issuers' or native chain assets themselves. Among them, the USDC on JuChain has only 14 holders on the entire chain, with the PoR address holding approximately 99.99% of the supply; the relevant contract also has mint and MINTER_ROLE permissions, enabling minting.

Public information shows that JuChain is not included in the official native USDC supported chain list by Circle or the official USDT supported protocol list by Tether. Therefore, the reserve data currently disclosed by JuCoin can only prove that it holds mapped tokens with corresponding names on the JuChain ledger, but it cannot yet prove that it holds an equivalent amount of genuine third-party redeemable assets.

In the future, JuCoin will need to disclose the custody addresses behind the mapped assets, cross-chain bridge mechanisms, redemption rules, and third-party audit proofs to address the market's doubts about the authenticity of its reserves.