CoinUp denies fraud claims after Binance co-founder sparks panic

CoinUp founder Queenie Li moved to reassure the platform’s users on June 24 after Binance co-founder Yi He accused an individual linked to CoinUp of impersonation and fraud, triggering fears of an exit scam and sharp volatility in the exchange’s CPX token.

The controversy began when Yi He posted on X alleging that a person named Zhu Pan had impersonated her in an attempt to scam Tron founder Justin Sun, according to CoinUp’s official statement. Sun confirmed the allegation in a repost, calling on the industry to “collectively resist this fraudulent behavior”.

The posts sent CoinUp’s community into a tailspin. Users questioned whether Zhu Pan was connected to CoinUp’s leadership and whether their funds were at risk. The CPX/USDT trading pair saw what CoinUp described as a “short-term sharp fluctuation” driven by concentrated selling pressure, according to a Binance Square report citing Foresight News.

CoinUp distances itself from Zhu Pan

CoinUp responded with multiple statements on X, distancing the platform from Zhu Pan. The exchange said Zhu Pan “is not a member of the CoinUp platform and does not participate in its core operations or management,” describing him instead as affiliated with a project listed on CoinUp, according to the Binance Square report.

The platform said its core business, risk management, and daily operations are managed independently by the CoinUp team. “Any claims directly linking his personal behavior to the CoinUp platform are inaccurate interpretations,” CoinUp stated.

致CoinUp用户及所有关心我们的朋友：

大家好，我是CoinUp创始人Queenie@CoinUpOfficials @COINUPZH

过去24小时，因为何一女士在X平台的推文
以及随之而来的各种讨论，我深知许多用户感到不安、困惑，甚至有些失望。
作为创始人，我完全理解这些情绪——
换作是我…

— Queenie Li @ CoinUp (@Queenie_CoinUp) June 24, 2026

CoinUp has also denied allegations made by users of social networks who speculated on whether they were part of an exit scam. They have strongly denied these allegations and have stated that they will seek legal action against any social media account that shares false information about them.

Why did CPX fall, and has the problem been resolved?

Although there is still some uncertainty about what caused this sell-off, CoinUp said that they believe there were many sellers who wanted to sell their CPX tokens, which contributed to the large price drop in CPX. After doing extensive research into the reason behind this drop, they decided there wasn’t any evidence to suggest that there was a hacking attack, data breach, or exploitation of any system vulnerabilities.

CoinUp stated that deposits, withdrawals, and trading were all functioning normally, and that its wallet system, account infrastructure, and asset custody “remain secure and stable”. But the exchange has not published the results of its investigation into who was behind the concentrated selling, leaving a key question unanswered for CPX holders.

As of June 25, 2026, CoinUp has yet to identify the person or group responsible for the major sell-off of CPX tokens that resulted from allegations of fraud involving Yi He, a co-founder of Binance. Additionally, CoinUp has not provided any information on the factors that caused CPX’s sharp drop in value, leaving users confused as to whether this drop occurred due to a coordinated sell-off, panic withdrawals, market manipulation, or any other set of circumstances.

Founder pledges transparency

On June 24, Queenie Li posted on X directly to users, indicating that many users are feeling anxiety over this situation. CoinUp’s official account then followed up by stating that the CEO’s post “speaks to where CoinUp stands and what we are committing to next”, adding that “your trust and faith mean everything to us”.

CoinUp announced that they are going to hold an X Space on June 25 at 20:00 UTC+8 to talk about user concerns as well as the employment issues that are at the center of the controversy, per Phemex News.

Whether or not these statements from CoinUp and the X Space will bring back confidence for CPX holders and platform users has yet to be seen. Additionally, the exchange has not provided a timeline for when they expect to complete their investigation into the volatility of the token price.