In recent times, MEXC customers have raised concerns about the exchange’s alleged arbitrary confiscation of customer funds. Despite these accusations, the MEXC exchange has vehemently denied any wrongdoing, stating that it has not engaged in any unauthorized actions regarding customer funds.
According to a report by Coin Telegraph, several MEXC users have taken to social media to express their grievances regarding what they describe as random “clawbacks” or centralized withdrawal freezes and liquidations of funds. One user, going by the name “Al Gore Rhythms,” reported a deduction of $33,658 from his spot account. Upon questioning the customer service team about this deduction, he was informed that MEXC had implemented measures to recover losses resulting from what they termed as “abnormal trading activities.”
Supporting his claim, Al Gore Rhythms provided evidence to the publication, including instances where transactions were allegedly deleted from his transaction history. However, the publication was unable to fully verify the authenticity of his claims.
Reports of MEXC freezing customer accounts and seizing funds have been circulating since early May, with crypto enthusiasts like @cryptonator1337 highlighting the issue on Twitter. Allegations of arbitrary clawbacks resurfaced at the end of February, with trader CoackKCrypto claiming that the exchange had taken $330,000 from him citing “abnormal profit” as the reason.
In response to these allegations, MEXC issued a statement reassuring users that those engaging in normal trading activities would not be impacted. The exchange also encouraged users with concerns about risk control measures to apply for an appeal, emphasizing the availability of their 24/7 customer service team.
Furthermore, Coin Telegraph reported on two incidents where MEXC froze customer accounts and liquidated their trades, including the case of Hashmoney, whose plea for the ability to trade to prevent balance liquidation remains unresolved.
As an offshore exchange, MEXC operates outside the strict regulatory oversight faced by publicly listed US companies like Coinbase. This lack of scrutiny has raised concerns among regulators and lawmakers, especially in light of recent collapses in the crypto market. Investigations into exchanges such as Binance for alleged money laundering and fraud have intensified, underscoring the need for greater transparency and accountability within the industry.
The incidents involving MEXC and other offshore exchanges serve as a cautionary tale for the crypto community, highlighting the importance of upholding the core principles of decentralization. While challenges persist, many believe that these experiences will ultimately strengthen the industry and reinforce its commitment to its foundational values.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
