Key takeaways:
- MEXC has been accused of freezing traders’ accounts and seizing funds, citing abnormal trading activities.
- Users, including one who lost $92,000 in Tether, have publicly shared their frustrations
In recent developments, cryptocurrency exchange MEXC has come under fire as multiple reports on social media, particularly on X (formerly Twitter), suggest that the platform has frozen several traders’ accounts and seized their funds.
The exchange defends its actions, citing “abnormal trading activities” as the primary motivation. However, aggrieved users claim that their funds were confiscated without warning, sparking a wave of accusations and grievances.
One affected user, identified as Vida, disclosed a substantial loss of $92,000 in Tether (USDT) tokens, attributing it to profits from successful trades on MEXC’s futures market over a period of two weeks.
Despite reaching out to customer support and providing necessary documentation, Vida was shocked to discover the complete depletion of funds and order history the following day.
Screenshots shared by Vida revealed MEXC’s acknowledgment of the flagged trades and the subsequent investigation by their risk control system and relevant personnel. The exchange, in its response, pointed to abnormal activities and invoked its terms of service to justify the account restrictions. However, this response has done little to assuage the growing sense of injustice among affected users.
Reports of account freezing and fund seizures on MEXC extend beyond Vida, with several traders publishing similar accounts of their experiences. One user claimed that their account was frozen after an $8,000 trade and they highlighted that other friends trading on MEXC have faced similar issues in recent weeks. 
According to this user, approximately 10% of their trading group has encountered account restrictions. Examining MEXC’s terms of service reveals that the exchange reserves the right to investigate and unilaterally determine violations of the agreement.
The actions the exchange can take in response to violations include blocking and closing order requests, freezing accounts, reporting incidents to authorities, publicly sharing alleged violations and the actions taken, as well as removing any violating information.
As affected traders voice their concerns and accusations against MEXC, the cryptocurrency community is closely watching how the exchange handles these issues.
The situation underscores the challenges and controversies surrounding the decentralized and often unregulated nature of the cryptocurrency market, emphasizing the importance of transparency and accountability in crypto exchanges.
