The CoinUp scandal: how the founders of Binance and TRON exposed a long-time fraudster
The crypto community has been shaken by a major scandal centered around the CoinUp platform, which is now openly being called a financial pyramid scheme. The incident escalated to a fundamentally new level after Binance co-founder Yi He and TRON founder Justin Sun publicly identified the scheme's organizer — a certain Zhu Pan.
The reason for such resonant statements was a publication by a well-known blogger, who accused Zhu Pan of another withdrawal of user funds. The story instantly attracted the attention of industry leaders. Yi He stated that Zhu Pan, as the shadow leader of CoinUp, regularly impersonated other people, including herself, in an attempt to deceive Justin Sun. Moreover, the fraudster actively used Yi He's name for manipulation.
Justin Sun promptly confirmed this information and called on the entire crypto community to unite in the fight against such scammers. Sun insists on bringing the perpetrators to legal responsibility, emphasizing that the market must suppress the activities of such individuals.
Who is Zhu Pan and the history of CoinUp
Zhu Pan is a figure in the Chinese crypto scene with a scandalous reputation dating back to 2017. His first high-profile project was the startup ZJLT, which attracted a substantial 25,000 ETH. However, after he joined the team, about 15,000 ETH disappeared without a trace, leading to a token price crash of over 90%. Investors, left empty-handed, staged mass protests, encountering aggressive men in black at the project's office. After this, Zhu Pan disappeared from view for a long time.
The CoinUp platform opened in September 2021 in Silicon Valley, registered in the Cayman Islands, but operating without the necessary licenses. In August 2025, the exchange suddenly collapsed. First, the withdrawal option was blocked, and then user balances were simply reset to zero. According to leaked reports, cash flows were instantly transferred to accounts of major platforms, including Binance. The total volume of affected deposits exceeded 20 million USDT, and the number of affected clients is estimated at approximately 230,000 people.
Deception technologies and a call for vigilance
Yi He also revealed details of the fraudster's methods. According to her, Zhu Pan actively uses neural networks to generate content, imitating correspondence on behalf of wealthy clans from China and Hong Kong. Fake accounts of well-known exchanges are created, as well as a fake profile of Binance founder Changpeng Zhao (CZ) on the WeChat messenger. Yi He urges all market participants to remain extremely vigilant and verify any information before entrusting their funds to dubious platforms.
Expert comment: This case is another harsh reminder that even in 2025, with all the advances in security and regulation, the crypto market remains a field for experienced fraudsters. The reaction of industry leaders — Yi He and Justin Sun — gives hope that the consolidation of efforts by major players can create effective mechanisms for identifying and blocking such schemes at early stages, protecting retail investors from capital loss.