Traders report frozen assets, account blocks on MEXC

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Crypto exchange MEXC has been enforcing its terms of service to freeze funds and restrict accounts in response to “abnormal trading activities.”

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Traders report frozen assets, account blocks on MEXC

Crypto exchange MEXC has allegedly frozen several traders’ accounts and seized their funds, according to multiple reports on X (formerly Twitter). The exchange claims the actions were motivated by “abnormal trading activities.” 

MEXC’s users have been complaining about account restrictions since Dec. 16. On X, the pseudonymous trader Vida revealed a loss of $92,000 in Tether (USDT) tokens, following profits from multiple recent trades over 15 days in MEXC’s futures market. “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,” they wrote.

Vida’s shared screenshots show that MEXC’s support team acknowledged that their risk control system flagged a problem with the trades, which was subsequently investigated by the exchange’s staff. As per MEXC’s reported statement:

“Regarding the account restrictions and issues related to futures trading/assets that you have raised, our risk control system and relevant personnel have conducted a thorough examination. It has been identified that there have been abnormal trading activities in your account and associated accounts. In accordance with the terms of use, we have taken measures to recover the losses incurred.”

Over the past few days, several traders have published similar reports. According to a user experiencing problems since September, their account on the exchange was frozen following an $8,000 trade. According to this user, other friends who trade on MEXC have also experienced the same issue over the past weeks.

“Judging from the proportion of blocked friends in the group around me, it is close to 10%,” they wrote.

Cointelegraph reached out to MEXC, but didn’t receive an immediate response.

MEXC’s terms of services say the exchange “has the right to investigate any violation of this Agreement, unilaterally determine whether you have violated this Agreement, and take actions under relevant regulations without your consent or prior notice.”

As per the terms, examples of such actions include blocking and closing order requests, freezing accounts, reporting incidents to authorities, publishing alleged violations and actions taken, as well as deleting any infringing information.

MEXC is a centralized cryptocurrency exchange established in 2018 and headquartered in Seychelles. According to its website, trading services are not available in the United States, Canada, and China. The exchange offers trading for over 2,000 pairs.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

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