Crypto investors have become particularly concerned about exchange misconduct following the collapse of FTX. Ultimately, in the web2 interface, you have to believe the figures shown to you, and technically, exchange officials have the opportunity, or rather the luxury, not to give you your balance whenever they wish. These days, the concern is growing even more.
MEXC Exchange Complaints
On social media, especially in the last few days, some traders have started to report that their accounts were suddenly frozen. The exchange claims that the actions were taken due to “abnormal trading activities.” However, the recent increase in such complaints specifically about MEXC has caused confusion.
A crypto analyst known by the alias Vida announced a loss of $92,000. After a series of trades in MEXC’s futures market over 15 days, the profits earned were deleted from Vida’s wallet. There are also rumors that such incidents occur more frequently to investors who trade based on news.
Screenshots shared by Vida show that MEXC’s support team indicated that their risk control systems flagged an issue with the transactions, which was later investigated by exchange personnel. The statements from the exchange included the following;
“In relation to the account restrictions and issues with futures/assets you have raised, our risk control system and relevant staff have conducted a comprehensive review. It has been determined that there were abnormal trading activities in your account and related accounts. In accordance with the terms of use, we have taken measures to compensate for the losses incurred.”
What Should Investors Do?
MEXC’s terms of service state that the company has the authority to unilaterally determine “possible violations” and to “transact without your permission or prior notification” under relevant regulations. Possible sanctions include a wide range of measures from blocking order requests to freezing exchange accounts.
MEXC is an exchange established in 2018 with its headquarters in Seychelles. If investors continue to voice such complaints on social media, the abundance of alternatives in the crypto markets could turn against MEXC.
At this point, investors should decide which platform to use by examining the platforms and comparing current service standards. For now, MEXC may be scaring its investors.
