MEXC, a Seychelles-based crypto exchange, is thrust into turmoil with mounting reports of frozen accounts and seized funds. Allegations of MEXC blocked accounts point to the exchange’s attribution of these actions to “abnormal trading activities.”
User Complaints and Financial Losses
Since December 16, disgruntled MEXC users have flooded X (formerly Twitter) with complaints about account restrictions. Among them is Vida, a pseudonymous trader, who bemoaned a staggering $92,000 loss in Tether tokens. This loss followed profits amassed over 15 days from various trades in MEXC’s futures market. Vida’s ordeal became a symbol of frustration as documented in screenshots shared on X.
Support Acknowledgment and Investigation
Vida’s interactions with MEXC’s support team revealed a shocking revelation — the exchange’s risk control system had flagged anomalies in the trades. In response, the exchange initiated an internal investigation, attempting to salvage the situation.
MEXC Blocked Accounts For Multiple Traders, Similar Woes
Vida is not alone in their predicament. Numerous traders have come forward, sharing stories of accounts frozen and assets seized. One trader, facing issues since September, reported a frozen account following an $8,000 trade. The predicament appears to be pervasive, affecting nearly 10% of the user’s trading group.
Terms of Service and Exchange Authority
MEXC’s terms of service wield substantial authority, allowing the exchange to take unilateral actions without prior notice. This includes freezing accounts, blocking order requests, reporting incidents to authorities, and deleting infringing information. The terms highlight a centralized control mechanism that grants the exchange extensive power.
Exchange Overview and Regional Limitations
Established in 2018, MEXC positions itself as a centralized cryptocurrency exchange offering trading for over 2,000 pairs. However, services are notably restricted in the United States, Canada, and China.
Navigating the Fallout
As the MEXC saga unfolds, traders find themselves ensnared in financial uncertainties, questioning the extent of the exchange’s authority. The community awaits transparency on the fate of their frozen assets, hoping for a resolution to the ongoing turmoil. The exchange’s reputation hangs in the balance, contingent on its ability to address and rectify the grievances of its disgruntled user base.