The number of complaints about MEXC being a scammer has increased as more users have reported their accounts being restricted for no apparent reason.
As a result of shady tactics, some well-known cryptocurrency exchanges, such as Celsius and FTX, have collapsed, shocking the market. More and more people are accusing MEXC of fraud and arbitrary account limits, adding to the industry’s difficulties as it tries to restore confidence.
Hashmoney had a spot account with the exchange for almost three years, but he started trading futures on the site in November 2023, increasing his original $300 balance to $14,000. After a successful SEI deal was closed in late December 2023, things started to go south. Hashmoney quickly learned that he couldn’t make withdrawals or initiate new deals.
Customer service asked Hashmoney to provide video identification in order to comply with the company’s risk management protocols and resolve the problem. In spite of the trader’s compliance, MEXC replied by locking his account for 60 days, making it impossible for him to make changes to current deals.
Hashmoney said that he was left in the dark about the situation since MEXC disregarded his support requests for an explanation of the account limitation. Even worse, he lost most of his money in the “Bitcoin ETF rejection” fall that happened on January 3 and couldn’t settle active deals.
There is certainly reason to be concerned about Hashmoney’s account, but the broader claims that the exchange has a conflict of interest due to its trading activities just add fuel to the fire.
“MDX,” creator of the MDXAlgo platform for automated trading, has lately made disturbing claims about the trading activities underlying MEXC. According to MDX, the exchange has an incentive to limit the accounts of successful traders as it serves as both a broker and a market maker, facilitating trading and taking opposite sides in client transactions.
“It is clearly unlawful in the trading space for MEXC to provide the products they do while concealing the fact that they are operating as a broker,” MDX said.
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