JuCoin Addresses ETHUSDT Futures Trading Anomaly, Commits To Full Compensation And System Improvements
In Brief
JuCoin experienced a futures system anomaly causing abnormal ETHUSDT contract profits and losses totaling millions of USDT, pledging full compensation to affected users.
Singapore-based cryptocurrency exchange JuCoin has provided a detailed explanation regarding a recent anomaly in its futures trading system and outlined its compensation plan. On August 1st, at 16:06, JuCoin experienced a brief disruption that caused an unusual price spike in the ETHUSDT perpetual contract.
The ETHUSDT perpetual contract is a derivative product enabling traders to speculate on the price of Ethereum relative to Tether without a fixed expiration date, allowing positions to be held indefinitely as long as margin requirements are met.
As a result of the anomaly, users saw abnormal profits totaling approximately 2.87 million USDT, while others incurred abnormal losses amounting to about 7.3 million USDT. In response, JuCoin has decided to fully release the abnormal profits to the affected users without any clawbacks. Additionally, the platform will fully compensate users who experienced losses during the incident, including those with unrealized losses, without applying any deductions. The total compensation is estimated at 7.3 million USDT.
All compensation payments are scheduled to be completed by 24:00 on August 8th. JuCoin has emphasized that it views this incident as a critical moment to improve its system’s stability and to reinforce protections for all users, especially during periods of extreme market volatility.
On-Chain Analyst ZachXBT Highlights JuCoin’s Regulatory Gaps Despite Growth Initiatives
JuCoin is a cryptocurrency exchange headquartered in Singapore, founded in 2013. In 2025, the platform introduced several notable initiatives, including the launch of its native token, JU, and the implementation of the CeDeFi Integration designed to remove wallet barriers for cryptocurrency users. The exchange also rolled out the Contract Guardian Program and established partnerships with 85 non-first-tier exchanges, incorporating entities such as JuChain, JuOne, JuCoin Labs, and JuChat.
A recent analysis by on-chain investigator ZachXBT pointed out that JuCoin lacks regulatory approval in major global markets, though it has submitted a licensing application in Taiwan. The platform remains unregulated in the United States, the European Union, and other regions with stringent regulatory frameworks, aside from oversight by Singapore’s Monetary Authority.
According to the analyst, ongoing speculation around the native token and an assertive marketing strategy aimed at boosting trading volumes appear to support the platform’s activity.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
