The MEXC crypto exchange, based in Seychelles, is currently embroiled in controversy following allegations of locking users out of their accounts and seizing their funds. These actions, supposedly in response to "abnormal trading activities," have raised concerns within the crypto community. Users have taken to social media platforms to voice their frustrations, accusing MEXC of unjust account restrictions and failure to respond to support requests.
One trader, known as Vida, reported being locked out of their account, with $92,000 in trading profits frozen and order history erased. MEXC's support team acknowledged the closure, citing abnormal trading activities, but failed to provide a satisfactory explanation. Vida, among other users, shared screenshots evidencing similar complaints, fueling concerns about the exchange's operations.
Vida suggested that MEXC's activities might include forging liquidity and market making, with the exchange betting against users' trades. This suspicion arises from the significant profits made by traders, leading to account closures. The situation has led to calls for users to exit MEXC, fearing it might follow a trajectory similar to the infamous FTX scandal. Despite these alarming allegations, MEXC has not yet commented on the complaints publicly, according to their terms of service, they reserve the right to take measures in recovering profits obtained in violation of their user agreement and privacy policy.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
