MEXC was accused of freezing accounts, and seizing funds amid abnormal trading claims.
Users seek assurance for fund safety and account management integrity.
MEXC, a prominent crypto exchange, finds itself embroiled in controversy over purportedly freezing accounts and seizing funds. Reports circulating on social media platforms, notably X, highlight grievances from multiple users since mid-December.
The situation escalated when a pseudonymous trader disclosed a staggering loss of $92,000 in Tether tokens. They reportedly suffered wipeouts following profitable trades made over 15 days in MEXC’s futures market. Screenshots shared by that user revealed interactions with MEXC’s support team, acknowledging a flagged trading anomaly investigated by the exchange’s staff.
MEXC, in response to inquiries, cited “abnormal trading activities” as the reason behind account restrictions and fund seizures. The exchange defended its actions, stating that according to their terms of use, measures were taken to recover losses incurred due to identified irregularities in trading activities across associated accounts.
Moreover, these allegations haven’t been isolated incidents. Other traders echoed similar grievances, with one user reporting an account freezing after an $8,000 trade. Complaints surfaced from individuals who alleged experiencing identical issues with their accounts on the exchange in recent weeks.
Notably, the MEXC official X account on Dec 24 tweeted that,
Recently, there have been rumors circulating on the internet trying to smear the platform by spreading misinformation and baseless claims. We would like to clarify the facts for our valued users to ensure that the information you receive is accurate and truthful. MEXC is operating smoothly, and all systems are normal.
MEXC
MEXC CEO Controversy
Controversy arose recently surrounding the deletion of the MEXC CEO’s Twitter account during this tough time. The exchange clarified that while the account was used for promotional purposes and engagement during the initial phases of MEXC’s global market development, it was never officially verified. The departure of the original CEO was in July 2022. The subsequent deletion of the account in December 2023 was clarified to have no association with the current official leadership of MEXC.
Acknowledging the outcry, MEXC apologized for the incident and pledged to handle such events more cautiously in the future. They announced improvements, including removing all interactive tweets from the former CEO and a commitment to making public announcements for significant personnel changes on official media accounts, all of which will be verified on their official verification platform.
As MEXC navigates through this tumultuous period, users and observers remain vigilant, awaiting further developments.