Cryptocurrency exchange MEXC is fighting back against a wave of rumors about its financial situation. The exchange said in a statement that all user funds are completely safe and fully supported. This comes after a number of critics on X (formerly Twitter) claimed that MEXC was short on cash and blocking users from withdrawing their money.
According to the exchange announcement, MEXC’s Proof of Reserves shows all major assets are backed by more than 100%, proving the exchange is financially solid. The company also said users can double-check this themselves through its updated Merkle Tree data, which will be refreshed later tonight.
The statement added that MEXC’s PoR information is publicly available across multiple platforms, including CoinMarketCap, CoinGecko, and DefiLlama. Additionally, the company reiterated that its $100 million Guardian Fund continues to safeguard user assets, with all related wallet addresses open for public verification.
According to Whale Insider, the statement was released by MEXC amid record withdrawals from the platform. While this raised eyebrows across the crypto community, MEXC emphasized that all operations remain normal. “All user assets are fully backed, and our Proof of Reserves (PoR) data shows that major assets are backed at over 100%,” the exchange wrote on X.
Data shared by Whale Insider highlights Bitcoin’s price climbing sharply from below $4,000 in 2019 to around $109,900 by late 2025. During this time, withdrawal spikes from the exchange increased, especially from mid-2024. This trend suggests that at the time investors were moving funds to private wallets for long-term holding, possibly due to rising uncertainty.
Such withdrawals typically reflect investor caution or growing distrust toward the exchange. Hence, MEXC’s assurance comes at a critical time for the industry, where transparency and user confidence remain key pillars of survival.
Allegations Stir Online Outcry
While MEXC is working to calm investors, fresh controversies had earlier erupted online. A pseudonymous X user known as Mystral_777 posted a 10-part thread accusing the exchange of serious misconduct.
The thread alleged everything from $10 million in frozen withdrawals to extortionate listing fees and executive misconduct. He shared screenshots, DMs, and supposed internal communications, but none of the claims have been independently verified by law enforcement or major regulatory bodies.
According to the thread, several crypto projects, including CateCoin, were charged up to $60,000 in listing fees and later asked for additional payments before launch. Mystral also alleged that when projects refused, their tokens were never listed. A screenshot of an email purportedly from an MEXC listing manager urged CateCoin to respond quickly for “marketing exposure.”
The more damaging accusation involved reports of frozen user withdrawals. Mystral claimed that over $10 million in user funds were locked without explanation. Several users echoed similar stories on social media.
MEXC Responds to Growing Criticism
In a separate but related incident, MEXC faced another crisis after freezing $3 million belonging to a trader known online as White Whale. The trader accused the exchange of wrongfully blocking his funds, while MEXC cited potential “suspicious activities” or violations of its terms of service.
Following public outrage, MEXC’s Chief Strategy Officer, Cecilia Hsueh, issued a candid apology on X, admitting to internal mismanagement. “We fucked up,” she wrote, acknowledging systemic issues within the company’s operations and customer service.
“Since I joined MEXC 2 months ago I’ve been fighting behind the scenes to get MEXC to change,” Hsueh said. “We grew really fast—a few years ago, we were a very small exchange, but given our current scale, our risk, operations, and PR teams have not kept up.”
Hsueh added that MEXC’s leadership had finally recognized the need for deep reform. She confirmed that the exchange would revise its risk management and customer service protocols. Moreover, it plans to launch a “fast-track channel” to help traders quickly resolve issues related to frozen assets.