Key Highlights
- MEXC users report lost funds and premarket scams, showing traders must stay vigilant and verify every transaction to protect their crypto assets.
- Despite strong reserves, MEXC faces trust issues as unresolved trades and missing collateral highlight potential platform risks for users.
- Rising crypto scams and high-profile losses show even minor mistakes can be costly, emphasizing careful trading and asset protection.
Cryptocurrency exchange MEXC is facing scrutiny once again as users report lost funds and alleged premarket scams. According to Gautamgg, an analyst and popular voice in crypto, traders have experienced multiple issues despite using the platform for nearly a year without problems.
“In the last 20 days, 2 serious cases happened—must read,” Gautamgg said in a detailed X post. The claims include missing collateral and unresolved settlement failures that users say violate MEXC’s own rules.
In one instance, a user bought RateX tokens at $0.4, while the listing price rose to $1.3. The seller failed to settle, yet MEXC reportedly kept the collateral instead of giving it to the buyer. Customer support allegedly offered inconsistent replies, showing confusion over their own premarket rules.
In a second case, a user’s trade was terminated, and 10 days later, the USDT funds still hadn’t returned. “No clear explanation from support,” the user noted.
Detailed cases highlight platform risks
In a related response to Gautamgg’s findings, WebTigerX affirmed his observations that MEXC is “Openly cheating users and breaking their Terms & Conditions.” In these instances, there seems to be an issue with premarket risks regarding collateral compensation and settlements.
The first case is contradictory to the MEXC Rule No. 10, which is known as the Collateral Compensation Scam. This rule states that all users should be refunded the collateral in the event of a seller’s default. However, the users were allegedly taken advantage of, and the funds were pocketed by the platform.
The second case is that of the Settlement Failure, where the USDT funds were held for more than 10 days in the system. WebTigerX stated that the above-mentioned events seem to be neither technical issues nor mistakes.
MEXC once again facing rage
In late October 2025, MEXC faced intense scrutiny following public accusations from trader The WhiteWhale, who claimed the platform had frozen over $3 million in his funds without clear justification, alleging it stemmed from his profitable trading activity.
The controversy escalated as on-chain investigator ZachXBT began reviewing similar user complaints, and community figures amplified calls for transparency. The matter prompted a rare public apology from MEXC’s Chief Strategy Officer Cecilia Hsueh on October 31, who admitted communication failures and confirmed the release of the funds.
This incident triggered a sharp spike in user withdrawals from the exchange, with CryptoQuant data showing Bitcoin outbound transactions surging dramatically amid broader rumors of withheld assets and potential insolvency. However, MEXC firmly denied the claims and reaffirmed full backing of user assets via Proof of Reserves exceeding 100% and pledging operational reforms.
MEXC reacts to increasing crypto scams
Despite this, MEXC has a strong financial base. On November 3, MEXC posted an updated Proof of Reserves, which indicated that their reserves were over their users’ deposits. The Proof of Reserves (PoR) included their reserves of USDT, USDC, Bitcoin, and Ethereum, which stood over 100%. The platform has also debunked claims of freezing $40 million in withdrawals and promoting unusually high 600% staking rewards for deposits of USDT.
Furthermore, MEXC gives the ability to check the reserves through the Merkle Tree system in cooperation with third-party mirrors on CoinMarketCap, CoinGecko, and DefiLlama. The period between April and June 2025 saw the platform prevent over 70,000 fraud attempts related to 8,500 gangs, lowering the fraud percentage by 12%.
Despite this, there has been a rise in cryptocurrency scams. According to TRM Labs, there was a 456% increase in AI scams from May 2024 through April 2025, with $2.47 billion lost between the first half of 2025.
High-profile losses highlight user vulnerability
The danger isn’t just on exchanges. Recently, one user lost $50 million in USDT from a simple copy-paste mistake. A scammer tricked them by creating a fake wallet that looked almost identical. This shows how even small errors in crypto can lead to huge losses, so caution is essential.
MEXC is facing growing trust concerns as users report problems with premarket trades. Even though the platform says it has enough funds to cover user deposits, traders should stay careful. With scams becoming more advanced and potential issues on the platform, it’s crucial to protect your money and double-check every transaction.
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