YEREVAN (CoinChapter.com) — The MEXC crypto exchange continues to face scam allocations. According to several reports circulating on social media, it has locked several traders out of their accounts, frozen their assets, and in some cases, arbitrarily confiscated their funds. Those raising the alarm point out that this is not the first time that users have experienced problems with the exchange.
Why is the MEXC crypto exchange freezing funds?
In a surprising development, several users have noticed that they
get kicked out of their accounts once they make decent profits trading on the exchange. In other words, if you win a trade against MEXC’s market participants, you can lose your profits.
One user lost a whopping $92,000 thanks to the alleged scam.
“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 the support and submitted documents, and then the second day, funds in my account were TOTALLY WIPED OUT along with the order history,”
the trader complained on X (formerly Twitter)
The user also shared screenshots from the customer support team which claimed that his account was frozen because “there have been abnormal trading activities” in his account and associated accounts.
This would have made sense if the case in question was an isolated incident. However, the entire social media is full of similar complaints from different people. How is everyone suddenly engaged in a questionable trading activity?
When the issue broke out, several speculations emerged about the possibility of the exchange shutting down. Some suggested that the
MEXC crypto exchange is not only corrupt but is also bankrupt. This led to the exchange issuing an official post denying those reports.
Moreover, X deactivated the account of the exchange’s former CEO, John Chen Ju. This led to further speculations and scam allegations. Although the exchange tried to deny this, screenshots show that they had previously tagged the same account. MEXC has since deleted this post and issued an explanation.
Trader users $14,000 thanks to alleged scam
In another alarming incident, one trader reported that he had lost around $14,000 thanks to the alleged scam that the MEXC crypto exchange runs.
As he detailed in a post on X, he used the exchange to trade in crypto and in a short time, made serious profits. This success did not go well with the MEXC crypto exchange. As a result, it confiscated his funds.
“Back in November 2023 I started Futures trading on this account and traded very safely started with just 300$ in account and growing it to over 14000$ in almost 2 months. MEXC didn’t like that…As I was also seeing some FUD about MEXC on twitter I tried to withdraw the same restriction was there,”
he wrote.
Since he was locked out, he could not adjust his position, leading to almost complete liquidation of his position.
The trader is now allegedly preparing to file a lawsuit against the alleged MEXC scam. However, the exchange has refused to give a registered address to be included in the suit.
Meanwhile, according to reports, the centralized cryptocurrency exchange, established in 2018, is headquartered in the Seychelles.
