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Whistleblower Request: Investigating the Red-Listed Crypto Exchange MEXC and Its Ties to Lithuanian EMI Paytend

Crypto exchange MEXC appealed against license revocation in Estonia
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FinTelegram has consistently flagged the crypto exchange MEXC, placing it on the Red Compliance List due to multiple regulatory warnings and poor customer feedback. We revealed that MEXC processes its FIAT transactions for cryptocurrency purchases via MEXC Estonia OÜ, which holds a crypto license in Estonia. This Estonian entity, in turn, uses Paytend Europe UAB, d/b/a s Paytend, a Lithuanian-regulated e-money institution, to handle FIAT payments through bank transfers.

Key Findings and Concerns

MEXC and MEXC Estonia use Lithuanian Paytend for bank transaction
  1. Significant Customer Relationship: Analysis of Similarweb data indicates that nearly 95% of referral traffic to Paytend’s website originates from MEXC, suggesting that MEXC is a major client for Paytend (see MEXC payment instructions screenshot right).
  2. Operational Ambiguity: Officially, MEXC Estonia is claimed to be independent of the MEXC crypto exchange. However, our investigations reveal that MEXC Estonia is integrated into the MEXC Group, functioning as its payment agent in Europe and the EU. Despite the Estonian FIU revoking MEXC Estonia’s crypto license at the end of 2023, the company continues to operate, awaiting a court decision after its appeal against the FIU decision.
  3. Chinese Connections: Both MEXC and Paytend have Chinese backgrounds. Paytend Europe UAB, established in 2017 as part of the Chinese Paytend scheme, received its EMI license from the Bank of Lithuania in early 2018. The referral traffic patterns and the Chinese descriptions on MEXC EU’s website further highlight the deep connections between these entities.

MEXC operates its business in a completely opaque manner and has no known regulatory license or registration in most jurisdictions where it offers its crypto financial services. It is also known that MEXC operates in the Russian market despite the existing sanctions.

Red-listed crypto exchange MEXC and Paytend

Read our MEXC Reports here on FinTelegram.

Summary of Similarweb Analysis

Paytend website traffic from MEXC
Similarweb analysis for Paytend.com (May 27, 2024)
  • Referral Traffic: Almost 50% of Paytend’s website visitors are referred via other sites.
  • MEXC Referrals: Nearly 95% of these referral visitors come from MEXC’s OTC platform (https://otc.mexc.com).
  • Geography: More than 12% of the website visitors come from Russia, which tops the list of countries in the MEXC website analysis.
  • Website Traffic: Paytend’s website saw less than 9,000 visitors over the 28 days leading up to May 24, 2024.

MEXC Key data

Trading namesMEXC, MEXC Global
MEXC Ventures
Business activityCrypto exchange
Domainwww.mexc.com
www.mexceu.com
https://m-ventures.io
Social mediaLinkedIn, X, Instagram, Youtube
Legal entitiesMXC Technology Pte. Ltd.
MEXC Global Ltd
MEXC Estonia OÜ
MEXC Lithuania, UAB
MX Global Ltd
Contact data[email protected]
[email protected]
JurisdictionSeychelles
Singapore
England (User Agreement)
Related individualsJohn Chen (LinkedIn) a/k/a
John Chen Ju
Yichen Peng
Ljudmila Budnikova
AuthorizationEstonian FIU crypto license
Payment optionsCrypto, Credit/debit card
Payment processorsMoonPay, Banxa,
Simplex, Paytend
Trustpilot1.3-star rating with a “Poor” trust level
Compliance ratingRed
WarningsBaFin, FMA, BCSC, SFC, FCA, CNMV

Whistleblower Request

Given these interesting associations and operational overlaps, FinTelegram seeks additional information about Paytend, its Chinese affiliations, and its partnership with MEXC. We are particularly interested in understanding the full extent of the relationships and any potential regulatory or compliance violations.

The close cooperation between MEXC and Paytend raises significant questions about their business practices and regulatory compliance. Your insights and information could be crucial in uncovering the full story and ensuring transparency and accountability in the financial services sector.

Please share what you know via Whistle42. Your confidentiality and anonymity are guaranteed.

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