December 26, 2023

Controversial Claims Surround Crypto Exchange MEXC Over Account Lockouts and Fund Seizures

Seychelles-based cryptocurrency exchange MEXC is facing severe criticism as users allege being locked out of their accounts, accompanied by the seizure of funds.

Despite the exchange attributing these actions to abnormal trading activities, the lack of transparent communication has ignited concerns within the cryptocurrency community.

A surge of user complaints has emerged on social media platform X, accusing MEXC of account lockouts, fund seizures, and unaddressed support requests. The unsettling accusations began circulating on December 16th, prompting crypto investors to question the exchange's integrity.

A trader named Vida took to social media platform X to share a distressing experience, revealing that his account was locked, a $92,000 trading profit frozen, and order history wiped clean. Adding to the frustration, MEXC's support allegedly provided no substantial explanation for the account seizure, citing only abnormal trading activities. Vida supported these claims with screenshots of his communication with MEXC's support, acknowledging the account closure and the outcome of the internal investigation.

This pattern of account lockouts appears to be widespread, with other users sharing similar grievances. Screenshots from MEXC's Telegram group surfaced, showcasing parallel complaints from users facing account access issues.

Vida suggested a possible motive behind these account closures, alleging that MEXC engages in questionable activities such as manipulating liquidity and market making. The claim suggests that the exchange, at times, takes positions against users' trades, effectively acting as its own market maker. If a trader accumulates significant profits, the exchange reportedly deems them problematic and promptly closes their account to mitigate potential financial obligations.

Further evidence presented by Vida included screenshots of MEXC's order book, seemingly thicker than competitors like Binance. However, he asserted that the exchange manipulated this appearance. Concluding the thread, Vida urged users to withdraw from MEXC promptly, likening its trajectory to that of FTX.

Compounding the situation, MEXC has remained silent on the social media complaints. Per the exchange's terms of service, it reserves the right to take measures to recover profits obtained in violation of its user agreement and privacy policy.

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