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One Day After Legal Warnings, CoinUp’s Founder Says ‘I’m Sorry’

CoinUp's founder has issued a personal, conciliatory statement over the Zhu Pan controversy, apologizing for a vetting lapse and promising an outside audit.

Written By Dhara Chavda Dhara Chavda
Published 2 hours ago·Updated 49 minutes ago
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Last updated: 49 minutes ago
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Last updated: 49 minutes ago
Published 2 hours ago
One Day After Legal Warnings, CoinUp's Founder Says 'I'm Sorry'
Show AI Summary
CoinUp’s apology and pledge for transparency signal a shift in crisis management, potentially impacting the broader crypto industry’s approach to trust and accountability
The platform’s commitment to independent security audits and proof of asset reserves reflects growing expectations for exchanges to prioritize user protection and transparency
The controversy surrounding CoinUp and Zhu Pan highlights the need for more robust vetting processes in the crypto space to prevent fraudulent activities and protect investors

CoinUp founder Queenie Li has personally addressed the controversy engulfing the platform, apologizing for an oversight in vetting Zhu Pan and pledging a series of transparency measures, in a notably softer response than the company struck a day earlier.

From legal threats to a personal apology

The change in posture is the most striking part. In its first statement on Tuesday, CoinUp pushed back hard, opposing the use of “definitive terms such as ‘rug pull’ or ‘scam'” and reserving the right to pursue legal accountability for what it called malicious rumor-mongering. In the June 24 statement, Li set that combativeness aside and led with contrition.

She told users the platform “has not run away, and it absolutely will not run away,” then turned to Zhu Pan directly. Describing him again as the project party behind one listed project rather than a CoinUp trader or core manager, Li acknowledged the company “didn’t fully understand his personal background during our initial review,” called it “an oversight in our work,” and said she felt “deeply sorry” for it.

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

It is a pointed concession, though a narrow one: the apology is for a screening failure, not an admission of any wrongdoing by the platform, which continues to deny operational ties to the individual.

On the allegations from Binance co-founder Yi He that set off the storm, Li struck a deferential note, calling them He’s “personal expression” on X and saying CoinUp is “actively communicating with her in hopes of clarifying the facts.”

‘CoinUp has not run away’

The core of the statement is reassurance, paired with promises. Li said all assets are safe, deposits and withdrawals are operating normally, and the operations team is on duty around the clock, and reiterated that a security review found no hacking, data breach, or exploited vulnerability. The sharp swings in the CPX token, which reached an all-time high above $0.829 last Friday before falling, were again attributed to market selling pressure, with the technical team still reviewing the data.

To rebuild confidence, Li laid out four commitments: inviting an independent third party to conduct a security audit and publishing the report; overhauling the listing-review process with stronger background checks on project founders; releasing regular proof of asset reserves; and holding ongoing live streams and AMAs.

Those are meaningful pledges, but they remain pledges. None has yet been delivered, and the pattern they follow—affirming solvency, promising audits and reserve attestations while an investigation proceeds—is a familiar one when a platform is working to halt an erosion of trust. It is a script used both by firms weathering unfounded panic and by those in genuine difficulty, and on its own it resolves neither possibility.

What remains unresolved

Several threads are still open. CoinUp has not said it removed the listed project tied to Zhu Pan or took any action against him, even as it promises tighter vetting going forward. Zhu Pan’s alleged history—reporting has linked a person of that name to a 2018 token project that later drew investor fraud complaints—remains contested, and he has reportedly denied founding or operating that venture.

Yi He, meanwhile, has widened her claims, alleging in follow-up posts that the individual used AI-generated content to impersonate prominent families and major exchanges. None of the central allegations has been tested by a regulator or court, and CoinUp’s own investigation into the CPX price action has not produced a published conclusion. Whether Li’s promised audit and reserve disclosures actually materialize, and what, if anything, her communication with Yi He yields, will determine whether the statement steadies the platform or merely buys it time.

Also Read: OKX Founder Star Xu Slams Binance Over MiCA Crash: You Can’t Buy Compliance

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Dhara Chavda
By Dhara Chavda
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Dhara Chavda is a Research Analyst at The Crypto Times. She covers U.S. crypto regulation — including the CLARITY Act and GENIUS Act — DeFi security and major protocol exploits, and investigations into crypto fraud and enforcement actions. Her work emphasizes primary sourcing and on-chain verification over secondary commentary. Dhara joined The Crypto Times in 2020 and has followed every major market cycle since — the 2021 bull run, the 2022 Terra and FTX collapses, the 2023 banking turmoil, the 2024 spot Bitcoin ETF launch, and the 2025–2026 regulatory cycle — first assigning and reviewing the desk's coverage, and now writing it herself. Her reporting has been cited by international outlets including TheStreet and Argentina's La Nación. She holds a Bachelor of Engineering in Computer Engineering from Gujarat Technological University (GTU), which informs her technical reporting on on-chain data, smart contract analysis, and protocol architecture.

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