Crypto exchange CoinUp is considering legal remedies following a sharp decline in its native CPX token and widespread allegations linking the platform to Zhu Pan, a controversial figure with a history of fraud accusations in China’s crypto market. The Singapore-based exchange issued multiple statements on June 23, aiming to distance itself from Zhu Pan and explain the sudden sell-off.
The CPX token, which had reached an all-time high above $0.829 the previous Friday, experienced heavy selling pressure that CoinUp attributed to “concentrated selling pressure on the market side.” The exchange stated it is investigating the cause but has so far found no evidence of a hack, data breach, or system vulnerability. Deposits, withdrawals, and trading remain operational, and user assets were not affected, according to a notice on its help center.
The controversy escalated when Binance co-founder Yi He took to X on June 22, warning that Zhu Pan had repeatedly impersonated her and Tron founder Justin Sun in scam attempts. She claimed Zhu used AI-generated content to mimic prominent families and major exchanges, and flagged a WeChat account impersonating Binance’s Changpeng Zhao. Sun corroborated the account, urging legal action.
A widely shared thread by crypto commentator Web3 alleged that Zhu Pan previously ran the ZJLT project in 2018, which raised hundreds of millions of yuan before collapsing, and accused CoinUp of employing similar lockup and dividend schemes. CoinUp firmly denied that Zhu Pan is a team member or involved in core management, describing him only as a project owner of one project launched on the exchange. The platform said it reserves the right to pursue legal accountability for “malicious rumor-mongering.”
The scale of the CPX decline and the identity of the seller remain unclear, leaving open questions about possible insider activity or market manipulation. The incident marks another high-profile case in a sector already rattled by fraud convictions and major enforcement actions.
