WikiBit Exchange Exit Scam Risk Ranking #12 — CoinUp: The Exchange Personally “Called Out” by Yi He — Would You Still Keep Your Money There?

Introduction: An Exchange Named by the “Crypto Industry Inspector”

In the previous 11 editions, we investigated HashKey (the compliance top student), HTX (a sanctions hotspot), UZX (the DAO penny-stock case), Phemex (the “Morgan Stanley elite” narrative), Tapbit (the MSB registration king), Coincheck (Japan‘s crypto phoenix), Deepcoin (the El Salvador makeover), Upbit (South Korea’s national exchange), Azbit (the Seychelles FSA regulatory embarrassment), FameEX (the three-country license collector), and Bitvavo (Europes compliance champion).

Each one had its own set of problems.

Today, in the 12th edition, we are looking at one of the most explosive cases — CoinUp.

This exchange has an impressive-sounding resume:

“Founded in Silicon Valley in September 2021,”

“Registered in the Cayman Islands,”

“Operating centers in Singapore, Canada, and Hong Kong,”

“Ranked No.29 globally in derivatives trading volume on CoinMarketCap,”

“More than $12.98 billion in 24-hour derivatives volume,”

“Over 15,000 daily active users,”

“300+ spot trading pairs, 700+ spot markets, 100+ futures products,”

“Daily trading volume reaching billions of dollars.”

Sounds like the profile of a top-tier exchange, right？

But on the other side of the story:

Binance co-founder Yi He publicly accused its “operator” of impersonating others for fraud, and even Justin Sun was reportedly deceived by him; WikiBits assessment shows “questionable regulatory credentials” and “no valid regulatory information found”; numerous users complained that “withdrawal channels are completely frozen” and “30+ day review periods have become normal”; the platform token CPX crashed from its peak, triggering panic; the founder threatened legal action one day, then apologized the next.

An exchange personally called out by Yi He — the “crypto industry inspector” — and forced into an “apology-style PR crisis” by its own founder.

Today, we are stripping away this “Silicon Valley image” layer by layer.

1. Regulatory Compliance: MSB + SEC Form D — Real Compliance or “The Emperors New Clothes”？

The Compliance Package Advertised by the Website: Three Badges, But Questionable Value

CoinUp has clearly invested significant effort into building a compliance image.

The company claims it has obtained a U.S. MSB registration, completed Canada FINTRAC registration, and submitted a Form D exemption filing to the U.S. Securities and Exchange Commission (SEC) in 2025, claiming it has “passed SECs comprehensive compliance review.”

Sounds impressive？

Lets break them down one by one.

U.S. MSB Registration — Extremely Low Barrier

Being registered as an MSB with FinCEN does not mean the business has undergone strict regulatory approval.

It does not require regulators to review the business model, verify financial strength, or assess customer asset protection capabilities.

As we have repeatedly emphasized in previous reports:

MSB is the cheapest “license sticker” in the crypto industry — and arguably the most common one.

Canada FINTRAC Registration — Registration, Not a Financial License

FINTRAC registration has a similar nature.

It is a registration with a financial intelligence authority, not a comprehensive financial regulatory license.

It does not mean the platform has received approval equivalent to a securities exchange license or a banking license.

SEC Form D — The Most Misleading One

This is the most impressive-sounding credential.

Submitting Form D does require filing information with the SEC.

However, Form D is only a notice filing for an exempt securities offering.

It means:

“We are conducting an offering under an exemption framework.”

It does not mean:

The SEC issued a license;

The SEC approved the exchange;

The SEC endorsed the platforms business operations.

WikiBit Assessment: A Reality Check

WikiBits evaluation of CoinUp is straightforward:

“Questionable regulatory licenses”

“Medium-level risk concerns”

“No valid regulatory information found”

Actual Regulatory Status

Platforms such as CoinPaprika and FXVerify have described the situation more directly:

“The company currently appears not to be regulated by any government authority.”

CoinUp itself has also admitted that it is “accelerating the expansion of compliance licensing in more regions.”

Translated:

The platform currently does not possess strong regulatory credentials and is still trying to obtain them.

Offshore Registration: A Regulatory Blind Spot

The core entity is registered in the Cayman Islands.

This is a typical offshore structure.

The Cayman Islands have relatively flexible crypto regulations. Once an offshore exchange disappears, overseas users often have very limited legal channels for recovery.

No Regulatory Protection for Chinese-Speaking Users

CoinUp aggressively targets Chinese-speaking users and offers large-scale derivatives services.

However, it does not hold legal operating qualifications in mainland China.

This places its Chinese-language operations in a cross-border gray area.

Risk Rating: High Risk

MSB registration + FINTRAC registration + SEC Form D filing

= three compliance stickers stacked together.

They do not equal a real regulatory license.

WikiBits conclusion — “no valid regulatory information found” — is closer to reality.

2. Account Freezing and Withdrawals: From “Instant” to “Frozen” — A Suspicious Transformation

This is the area where CoinUp faces the most controversy.

The platform has repeatedly claimed that deposit and withdrawal channels remain permanently operational.

However, overseas communities and WikiBit exposure sections contain numerous complaints from users reporting frozen assets and withdrawal difficulties.

Withdrawal Crisis: From “Instant Withdrawal” to “Months of Review”

An investigation titled “Exclusive Investigation into CoinUP Withdrawal Crisis” described the evolution of CoinUps withdrawal problems:

Early 2023:

The platform promoted:

“Lightning-fast withdrawals”

“No KYC restrictions”

This attracted a large influx of users.

Mid-2023:

The platform quietly introduced “risk control reviews.”

Withdrawal delays increased from several hours to:

3–5 days.

March 2024:

Mandatory KYC verification was introduced.

Users without verification were prohibited from withdrawing.

June 2024–Present:

The rejection rate for verified users increased significantly.

Reasons included:

“System upgrade”

“Blockchain congestion”

“Security verification failure”

Withdrawal delays exceeding:

30 days

became increasingly common.

Real User Complaints

One user complained on Trustpilot:

“Unable to withdraw funds from the wallet. I was asked to pay cryptocurrency capital gains tax before unlocking my account.”

Users on WikiBit also reported:

“This platform is a scam platform. Withdrawal is impossible, customer service is fake and nobody responds.”

Another user stated:

“My withdrawal has been pending for days. Customer service does not reply.”

Data Evidence

According to third-party complaint statistics:

CoinUp withdrawal-related complaints surged 412% quarter-over-quarter in Q2 2024;

More than 83% of complaints involved funds remaining frozen even after completing KYC.

On-Chain Asset Analysis

CoinUp has publicly disclosed some cold wallet addresses.

However:

It is impossible to clearly distinguish between hot wallets, cold wallets, and project-controlled wallets;

The flow of funds involving its native token CPX is highly complex;

Ecosystem funds frequently move from exchange wallets to third-party project addresses;

These assets may leave direct exchange control, making on-chain tracing extremely difficult.

At present:

No clear evidence has been found showing massive hidden asset transfers or large-scale off-chain user fund deductions;

However, during periods of market panic, abnormal large transfers from platform wallets have occurred multiple times.

Risk Rating: High Risk

This is not simply a case of “poor withdrawal experience.”

This is the classic scenario:

“Once your money goes in, getting it out becomes extremely difficult.”

The path from:

“No-KYC instant withdrawals”

to:

“months-long reviews”

and from:

“smooth user experience”

to:

“account freezing”

looks extremely similar to the patterns previously seen with:

UZX;

Azbit;

FameEX.

The warning signs are already familiar.

3. Reserve Transparency: A $50 Million Protection Fund + $3 Billion in Reserves — But Who Actually Believes It？

Official Data: Beautiful Enough to Look Like Photoshop

CoinUp officially claims that it has:

$3 billion in reserve assets

$50 million user protection fund

Proof of Reserves (PoR) mechanism

Hot and cold wallet separation + multi-signature security

CoinMarketCap shows that CoinUps reserve assets are approximately NT$85,510,132,290 (around $2.7 billion) — based on data directly submitted by the exchange.

But the questions remain…

First: Who Has Verified the $3 Billion Reserve Assets？

CoinUp claims that the figures are “directly reported by the exchange.”

In other words:

The exchange itself provided the numbers.

How much credibility should users place in self-reported data？

Second: Is the PoR Mechanism Actually Operating？

CoinUp mentions “PoR” in its promotional materials.

However, there is no publicly available independent third-party audit report confirming its implementation.

Founder Queenie Li only promised after the crisis:

“To advance third-party security audits and disclose proof of reserves.”

This raises a critical question:

If PoR was already operating, why was there a need to promise it after the crisis？

This suggests that independent verification may not have existed beforehand.

Third: The $50 Million Protection Fund — Does It Still Exist？

CoinUp announced in 2023 that:

“The protection fund is valued at $50 million, with BTC and USDT available for withdrawal at any time.”

However, after the 2026 crisis erupted, there has been no independent verification confirming that these funds still exist.

Risk Rating: High Risk

$3 billion in reserves + $50 million protection fund + PoR mechanism

Sounds perfect.

But all of these claims come from:

the platform itself.

Without an independent PoR audit, a self-proclaimed PoR is not much different from having no PoR at all.

The fact that the founder only “promised” third-party audits after the crisis indicates that such verification was not previously in place.

4. Asset Strength: Explosive Numbers That Fail Under Scrutiny

Impressive Statistics

CoinUp advertises:

24-hour spot trading volume: $7.1 billion

Coverage: more than 200 countries worldwide

700+ spot trading pairs

100+ futures products

10 million+ registered users

But these numbers raise serious questions.

First: $7.1 Billion Daily Spot Trading Volume — How？

A platform founded less than five years ago, with no effective regulatory license, claims billions of dollars in daily spot volume.

Why？

For comparison:

Bitvavo, often regarded as a European compliance-focused exchange, has daily trading volume of roughly $150 million.

CoinUp‘s claimed trading volume is more than 80 times higher than Bitvavo’s.

Yet:

Bitvavo operates under European regulatory frameworks;

CoinUp has no comparable effective regulatory license.

The gap between trading volume and regulatory credibility is difficult to ignore.

Second: 10 Million Registered Users — Who Verified This？

Again:

The figure comes entirely from the platform itself.

There is no publicly available independent verification.

Third: The Roller Coaster of Platform Token CPX

After launch, CPX surged by approximately 2,500%.

However, during the crisis in June 2026, CPX experienced:

extreme short-term volatility.

The token went from:

“100x potential coin”

to:

“crash token”

in less than one year.

In addition, CoinUps ecosystem relies heavily on its native token CPX for growth.

The platform aggressively promoted:

CP node programs;

staking and locked-yield products;

CPX-based ecosystem incentives.

Once CPX collapses, the platforms cash flow could face severe pressure.

The June 2026 CPX crash of more than 99% triggered widespread panic among users and became a typical crisis event.

Based on currently available public information:

CoinUp has no major traditional venture capital backing;

Financial data is not publicly disclosed;

External parties cannot verify its actual revenue, liabilities, or financial health.

As an offshore exchange, CoinUp faces a relatively high financial transparency and “black box” risk.

Risk Rating: High Risk

5. Internal Operations and Team: Zhu Pan, “Q Sister,” and the “Apology PR Strategy”

Yi He Personally “Called It Out”: One of the Most Explosive Accusations in Crypto History

On June 23, 2026, Binance co-founder Yi He posted on X, triggering a major industry controversy.

She directly accused:

CoinUp operator Zhu Pan allegedly impersonated others in an attempt to scam her, but failed. He also allegedly impersonated her identity to deceive Justin Sun.

Later, Justin Sun himself reposted the accusation and confirmed the claims, calling on the industry to:

“jointly resist such fraudulent behavior.”

A crypto exchange operator being accused of fraud by both:

Binance co-founder Yi He;

TRON founder Justin Sun;

is extremely rare in the history of the crypto industry.

Who Is Zhu Pan？

According to reports from crypto influencers:

Zhu Pan previously operated the ZJLT project, which allegedly collapsed after fundraising.

This time, CoinUp has again been accused of following a similar pattern, involving a much larger amount of capital.

Blockchain analysts tracking fund movements reportedly found that some user funds eventually flowed into two Binance accounts.

The accounts were allegedly linked to core CoinUp insiders:

“Zhu” and “Pan” (online referred to as “Q Sister”).

CoinUp‘s Response: From “Legal Action” to “I’m Sorry”

Stage One (June 23–24): Strong Denial

CoinUp initially issued a statement claiming:

Zhu Pan was not a platform operator or core team member.

The company also announced that it would take legal action against accounts spreading “false information.”

Stage Two (June 24): Founder Apology

Only one day later, founder Queenie Li dramatically changed her tone.

In a statement, she admitted:

The company:

“did not sufficiently understand his personal background during the initial review process.”

She described this as:

“a mistake in internal work procedures”

and stated:

“We sincerely apologize.”

She also promised four actions:

Invite independent third parties to conduct security audits and publish reports;

Reform token listing procedures and strengthen background checks on project founders;

Regularly publish proof of reserves;

Continue hosting livestreams and AMA sessions.

From:

“we will take legal action”

to:

“we sincerely apologize”

in just one day.

Stage Three (June 25): Space Livestream Damage Control

During an X Space livestream, Queenie once again emphasized:

“CoinUp will never run away”;

“All platform assets are safe”;

“Deposits and withdrawals are operating normally.”

The livestream reached more than 15.6K concurrent viewers.

Who Is CoinUp Founder Queenie Li？

Public information shows that CoinUps founder is Queenie Li (Li Qina).

However, apart from this crisis response, almost no public background information about her can be found in the crypto industry.

There are:

no major industry conference speeches;

no major media interviews;

no significant public industry footprint.

A founder behind an exchange claiming:

10 million users;

$7.1 billion daily trading volume;

is almost invisible in public records.

Risk Rating: High Risk

Yi Hes accusation is not merely an online rumor.

It was a public accusation supported by Justin Suns confirmation.

A founder changing from:

“threatening legal action”

to:

“publicly apologizing”

within one day suggests the situation may be far more serious than it initially appeared.

The promised:

third-party audit;

proof of reserves disclosure;

have still not been independently verified.

For an exchange handling billions of dollars in claimed assets, promises are not enough — transparency must be proven with evidence.

6. Product Experience and Trading Depth: Feature-Rich, But Mostly “Paper Features”

Product Line: It Has Everything

CoinUps product ecosystem is indeed “complete”:

Spot trading (700+ trading pairs)

Futures trading (100+ products)

Copy trading

Prediction markets (such as World Cup-related events)

Simple Earn, Launchpad, Launchpool, IEO

U.S. stock trading

U Card (an on-chain asset spending card)

Self-developed public blockchain CP Chain

CoinUps vision is:

One account to trade global crypto and financial products.

Sounds ambitious.

But most of it remains only “paper features.”

First: The More Features, The More It Looks Like a Casino

From spot trading to futures, from copy trading to prediction markets, from IEOs to U.S. stocks — CoinUp offers almost everything.

But the problem is:

It is not truly excellent at anything.

This “big and comprehensive” model is often seen in high-risk platforms:

Use flashy features to attract users, then monetize users through withdrawal restrictions.

Second: Liquidity Is Questionable

If CoinUp truly has:

$7.1 billion in daily trading volume

and genuinely deep market liquidity,

why are so many users reporting:

“withdrawals are difficult”？

The answer may be:

Trading volume could be inflated.

The real available liquidity may be far lower than advertised — potentially close to zero during stress periods.

Third: Frequent App Updates, But Core Problems Remain Unresolved

CoinUp claims that during the first half of 2026 it completed:

8 major App updates;

More than 20 product upgrades.

However, the issue users care about most:

withdrawals

remains unresolved.

Risk Rating: High Risk

A long feature list cannot hide the core problem:

Users cannot withdraw their money.

An exchange that struggles with basic withdrawals is simply putting new clothes on an old problem.

More features do not equal more safety.

7. Community Feedback: A Full-Blown Trust Crisis

User Complaints: From “Withdrawal Problems” to “Scam Accusations”

On platforms including FX110 complaint forums, WikiBit, and Trustpilot, CoinUp has received a large number of negative reviews:

“This platform is a scam. Withdrawals are impossible, customer service is fake, and nobody responds.”

“My withdrawal has been pending for days. Customer service does not reply. This is a fake platform.”

“They refuse withdrawals and claim users made profits. I have never seen an exchange refuse withdrawals because users earned money.”

“Unable to withdraw funds from the wallet. I was asked to pay cryptocurrency capital gains tax to unlock my account.”

Community Control: Removing Users and Restricting Speech

According to investigative reports, CoinUps official Telegram community adopted strict moderation measures:

Users asking about withdrawal progress were removed;

Users sharing withdrawal failure screenshots were muted.

One report stated:

“Only two types of messages remained in the group: repeated customer-service bot messages and new-user inquiries about deposit promotions.”

Panic After the Yi He Incident

On June 23, 2026, after Yi Hes post, panic spread throughout the CoinUp community.

The platform token CPX experienced concentrated selling pressure.

Users began questioning:

“Is Zhu Pan really connected to the platform？ Are my funds safe？”

Although CoinUp denied that Zhu Pan was a platform member, the founder admitted the next day that there had been a “review failure” and issued an apology.

This “deny first, admit later” response only intensified user concerns.

Fundamentally, CoinUps community trust has already collapsed.

When the co-founder of Binance and the founder of TRON simultaneously accuse your “operator” of fraud, regardless of how the platform explains itself, rebuilding trust becomes extremely difficult.

Risk Rating: High Risk

Trustpilot negative reviews + FX110 complaints + strict community control + Yi Hes public accusation + founder apology

=

A five-layer blow to CoinUps credibility.

Community confidence has fallen below the floor.

8. Comprehensive Exit Scam Risk Assessment

Overall Rating: Extremely High Exit Scam Risk

CoinUp joins Azbit and FameEX as one of the highest-risk exchanges in this series — forming the new “high-risk trio.”

Its risk profile is almost all textbooks.

1. “Regulatory Emperors New Clothes”

MSB registration + SEC filing were packaged as “compliance.”

But WikiBits conclusion:

“No valid regulatory information found.”

Three compliance stickers stacked together do not equal one real regulatory license.

2. Withdrawal “Pig Butchering” Pattern

From:

“No-KYC instant withdrawals”

to:

“months-long reviews”

From:

“smooth experience”

to:

“large withdrawal freezes.”

The pattern is extremely similar to:

UZX;

Azbit;

FameEX.

3. Severe Data Inflation Concerns

Claims of:

$12.9 billion daily trading volume;

10 million users;

$3 billion reserve assets;

are all self-reported.

There is no meaningful third-party verification.

4. Yi He Personally “Called It Out”

Binance co-founder Yi He publicly accused the platforms “operator” of impersonation-based fraud.

Justin Sun reposted and confirmed the accusation.

This level of industry attention is more damaging than many regulatory warnings.

5. Founders “Apology PR”

The founder moved from:

“we will take legal action”

to:

“we sincerely apologize”

within one day.

The promised:

third-party audit;

proof-of-reserves disclosure;

have still not been independently confirmed.

6. Strict Community Control

Removing users, muting criticism, and suppressing negative discussions are common warning signs before the collapse of high-risk platforms.

This is not simply a case of:

“high exit risk.”

The real concern is:

the possibility that the platform could collapse at any time.

9. Recommendations for New and Existing Users

For New Users

Stay away.

This is one of the clearest conclusions in this series.

Why would you choose a platform with:

Yi Hes public accusation;

WikiBits “no valid regulatory information” warning;

widespread withdrawal complaints;

founder apology after controversy？

This is a four-layer warning signal.

If you have already registered:

Withdraw your assets immediately. Withdraw whatever you can.

Do not focus on fees.

Getting your funds out comes first.

Beware of the “Silicon Valley + Cayman Registration” Narrative

Silicon Valley does not equal safety.

Cayman registration does not equal compliance.

A truly reliable exchange does not need a geographic label to build credibility.

Beware of “Everything-in-One” Product Strategies

Spot + futures + copy trading + prediction markets + IEO + U.S. stocks + public blockchain.

The more features a platform advertises, More carefully, users should evaluate whether those features are genuine value or simply marketing.

For Existing Users

Immediately Review Your Exposure

If your CoinUp assets exceed 5% of your total crypto holdings:

Consider reducing your position immediately.

Move out whatever you can.

Withdraw Now — Do Not Wait

Many users face:

“30+ day reviews”

once believed:

“It should be fine.”

Waiting is often the biggest risk.

If You Cannot Withdraw

Do not pay any “unlock fees.”

Be especially cautious about:

“capital gains tax”;

“account release fees”;

“security deposits.”

Paying more money usually does not solve withdrawal problems — it only increases losses.

Monitor Developments Around the Yi He Incident

If more evidence emerges, CoinUp may face an even larger trust crisis.

Leaving early is always easier than escaping later.

Do Not Deposit Another Dollar

This may be the simplest and most important recommendation.

Final Recommendation

CoinUp is not suitable for any user.

HashKey at least has regulatory backing.

Bitvavo at least has strong European compliance foundations.

Upbit at least dominates its domestic Korean market.

But what does CoinUp actually have？

Three “license stickers”;

A WikiBit conclusion stating no valid regulatory information;

Numerous withdrawal complaints exceeding 30 days;

An “operator” publicly accused by Yi He of impersonation-related fraud;

A founder who moved from “legal action” to “Im sorry” within one day;

A claimed $12.9 billion trading volume that few people trust;

A $50 million protection fund that nobody has independently verified.

CoinUps official website describes itself as:

“A leading global crypto derivatives trading platform.”

But in the eyes of many users, its only “leading” position may be:

leading the industry in how a high-risk exchange looks before collapse.

This is not:

“high-risk investment.”

This is:

voluntarily handing over your money.

Next Episode Preview

WikiBit Exchange Exit Scam Risk Ranking #13 — BiFinance Exchange

Stay tuned.

Risk Disclaimer:This article represents personal analytical opinions only and does not constitute investment advice. Cryptocurrency investment involves significant risks. Please conduct your own research and make independent decisions.

Information in this article was updated on September 1, 2026. Please verify important information through multiple sources.