MEXC Under Fire Again After Users Flag Premarket Scams

TheNewsCryptoPublished on 2025-12-20Last updated on 2025-12-20

Abstract

MEXC faces renewed criticism as users report fund losses and premarket trading issues. Analyst Gautamgg highlighted two recent cases where the exchange allegedly violated its own rules. In one instance, a buyer purchased tokens at $0.40, but when the listing price reached $1.30, the seller defaulted. Instead of refunding the buyer as per Rule 10, MEXC retained the collateral. Another user reported canceled trades and frozen USDT for over 10 days with unclear support responses. This controversy follows previous accusations in late October when MEXC was accused of freezing over $3 million in user funds without justification. The exchange's CSO later apologized and released the funds. MEXC has since published Proof of Reserves and claims to combat fraud, having blocked over 70,000 fraud attempts recently. However, trust concerns persist as crypto scams surge industry-wide, with TRM Labs reporting a 456% increase in AI-related scams and $2.47 billion lost in the first half of the year.

MEXC is catching heat again as users report lost funds and premarket trade issues. Analyst Gautamgg posted on X about two big problems in the last 20 days that break the exchange’s own rules. Traders say support gives confusing answers and settlements drag on or fail.

One case had a buyer picking up RateX at $0.4 while the listing hit $1.3. The seller didn’t settle, but MEXC kept the collateral instead of handing it to the buyer, going against their Rule 10 on refunds for defaults. Another trade got canceled, and USDT sat stuck for over 10 days with no clear word from support.

Past Drama Lingers

This echoes late October when trader The WhiteWhale accused MEXC of freezing over $3 million without good reason, tied to profitable trades. ZachXBT looked into similar complaints, sparking big backlash.

CSO Cecilia Hsueh apologized publicly October 31, admitting communication mess-ups, and funds got released. Withdrawals spiked amid solvency whispers, but MEXC denied issues and pointed to over 100% reserves.

MEXC posted fresh Proof of Reserves November 3 showing full backing for USDT, USDC, Bitcoin, and Ethereum. They use Merkle Tree checks with mirrors on CoinMarketCap, CoinGecko, and DefiLlama.

From April to June they blocked over 70,000 fraud tries linked to 8,500 groups, cutting fraud by 12%.Crypto scams are exploding anyway.

TRM Labs says AI scams jumped 456% from May 2024 to April 2025, with $2.47 billion lost first half of the year. One guy recently dropped $50 million USDT on a copy-paste wallet trick.

MEXC says reserves are solid and they’re fighting fraud hard, but trust takes hits with these reports. Traders have to stay alert, keep an eye on the rules, and be ready for sudden account closures in such a fast changing market.

TagsCryptoMEXCScam

Related Questions

QWhat are the two main issues users recently reported about MEXC's premarket trading?

AUsers reported that in one case, a buyer purchased RateX at $0.4 but the seller did not settle after the listing hit $1.3, and MEXC retained the collateral instead of refunding the buyer as per their rules. In another case, a trade was canceled and the user's USDT was frozen for over 10 days with no clear explanation from support.

QWhich MEXC rule was allegedly violated in the RateX premarket trade case?

AThe exchange allegedly violated its own Rule 10, which stipulates refunds for defaults in premarket trades.

QWhat past incident involving MEXC is mentioned in the article?

AThe article references an incident from late October where a trader named The WhiteWhale accused MEXC of freezing over $3 million of their funds without a valid reason, which was related to profitable trades.

QHow did MEXC's CSO respond to the backlash from the October incident?

ACSO Cecilia Hsueh issued an apology on October 31st, acknowledging communication failures, and the frozen funds were subsequently released to the users.

QWhat evidence does the article cite to show the growing problem of crypto scams beyond MEXC?

AThe article cites a report from TRM Labs which states that AI-powered crypto scams increased by 456% from May 2024 to April 2025, with a total of $2.47 billion lost in the first half of the year, including one instance where a user lost $50 million USDT to a copy-paste wallet scam.

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