Seychelles-based crypto exchange MEXC has come under fire for allegedly locking users out of their accounts and seizing their funds. These actions, which the exchange claims were motivated by abnormal trading activities, have sparked concerns from the crypto community. Many users have flocked to social media platform X in recent days to accuse MEXC of locking them out of their accounts, seizing their funds, and failing to respond to support requests.
Allegations Of MEXC Locking Users Out Of Accounts
MEXC users have recently come forward with some disturbing accusations against the exchange. The accusations, which started on December 16th, coupled with the lack of response from MEXC, have had crypto investors wondering about the shady activities of the exchange.
According to a post on social media platform X by a trader known as Vida, the shady activity led to his account being locked out, his $92,000 trading profit frozen, and the order history wiped out. To make matters worse, the exchange’s support failed to provide a valid explanation for the account seizure, only claiming abnormal trading activities on the account. Vida backed up this claim with screenshots of his conversation with MEXC’s support, where the exchange acknowledged the account closure and the outcome of the investigation conducted by their team.
As of today, the market cap of cryptocurrencies stood at $1.631 trillion. Chart: TradingView.com
It would seem this trend has been going on for a while, with various other users complaining of them being locked out of their accounts. Vida also shared screenshots of the exchange’s Telegram group which showed similar complaints from other users.
Mexc is going shameless mode these days, many users have complained on X that their funds are frozen & taken. I got wiped out for 92k USDT too.
I made my profit through several news trades, 5x’ed my bag on mexc futures in 15 days, and then my account was frozen.
I contacted… pic.twitter.com/urlpQ1e664
— Vida (@Vida_BWE) December 22, 2023
Possible Explanation
While explaining further, Vida noted a possible explanation for the account closures. According to the trader, MEXC is involved in shady activities which include forging its liquidity and market making. The exchange often bets against the user’s trades, playing the role of market makers themselves. However, if a trader makes too much profit, they become a problem for the exchange. Sometimes the profit and the deficit the exchange has to pay the trader is so big that it closes the account forthrightly.
The trader also posted screenshots of the exchange’s order book, which appeared to be thicker than other other exchanges, including Binance. However, Vida claimed this was forged by the exchange. He ended the thread by urging users to exit the exchange at once as it is currently on its way to ending up like FTX.
To add insult to injury, MEXC has failed to make any comments on the complaints on social media. According to the exchange’s terms of service, it reserves the right to taking measures in recovering any profits obtained in violation of its user agreement and privacy policy.
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