FinTelegram has pointed out several times that MEXC is a non-transparent crypto exchange. The user agreement provides just as little information about the operators as the website. The names of the executives and the key team members are also not mentioned on the website. There is also no explanation of the regulation. MEXC is now threatening users with legal action if they make claims about account suspensions on social media.
MEXC Under Fire
The crypto exchange MEXC has recently come under scrutiny due to circulating rumors about the arbitrary freezing of user accounts and possible insolvency. This situation has raised concerns, especially given the absence of crucial compliance information that is typically disclosed by other major crypto exchanges like Coinbase and Binance. Does anybody know the CEO of MEXC, its CFO, or let alone its Compliance Officer?
In our reviews, we disclosed that MEXC Estonia OÜ, which operates in Estonia with a crypto license, acts as the payment agent for the scheme. Shortly after our first review, the Estonian FIU revoked the crypto license in November 2023. MEXC Estonia has appealed against this (read our report here). The decision to revoke the license is now up to the court. MEXC Estonia has sent lawyers to FinTelegram claiming that the Estonian MEXC Estonia has nothing to do with the global MEXC crypto scheme. However, we were able to prove to the lawyers that our reports were correct. MEXC operates with a brazen level of non-transparency and legal action against critical reports.
Allegations and Lack of Transparency
Unlike its counterparts such as Binance, Coinbase, Bitstamp, Bitpanda and many other regulated or registered crypto exchanges where key operational details are publicly known, MEXC operates with a certain level of opacity. Important information such as legal entities, key persons, and regulatory compliance data remains undisclosed. This lack of transparency has fueled rumors and speculation, including fears of insolvency, prompting some users to withdraw their funds from the platform. The absence of a CEO or a central figure to address these concerns exacerbates the situation.
MEXC’s Rebuttal to Allegations
MEXC has categorically denied the allegations of unilaterally freezing accounts or wiping out user profits. In a firm rebuttal, the MEXC team opposed what they described as defamatory attempts and baseless claims, suggesting the possibility of legal action against the purveyors of these rumors. MEXC emphasized its commitment to customer welfare and the safeguarding of user interests.
User Complaints and MEXC’s Response
The exchange’s denial followed multiple reports from disgruntled users, some of whom accused MEXC of erasing profits and trade histories. One user, identified as Crypto Jesus (@verifiedjeff) on X (formerly Twitter), said that everybody should act as if MEXC could collapse:
As brutal as it would be short term, I think everyone should plan as if #MEXCGlobal is going under. My advice to anyone holding anything on that #CEX is to convert it into $USDT & get it off ASAP.
Crypto Jesus on X (link)
Another user with the handle Vida (@Vida-BWE) claimed to have lost access to 92,000 in USDT stablecoins due to account freezing, with MEXC‘s support team citing “abnormal trading activities” as the reason. In response, MEXC‘s Dec. 24th statement urged users to refrain from spreading false information and to rely only on official communication channels for updates.
Despite MEXC’s assurances and calls for restraint in spreading unverified information, some users have continued to report issues with withdrawal requests, adding to the prevailing uncertainty about the exchange’s operational status.
Our Conclusion
The situation at MEXC highlights the challenges faced by crypto exchanges operating without full transparency. As the industry continues to evolve, the need for clear regulatory compliance and open communication with users becomes increasingly critical to maintaining trust and stability in the crypto market.
