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YEREVAN (CoinChapter.com) — The MEXC crypto exchange continues to face scam allegations. Traders have been locked out of their accounts, had their assets frozen, and in some cases, seen their funds confiscated. This is not the first time users have experienced problems with the exchange.
Why is the MEXC crypto exchange freezing funds?
Several users have noticed that they get kicked out of their accounts once they make decent profits trading on the exchange. In other words, if you win a trade against MEXC’s market participants, you can lose your profits. One user even lost $92,000 due to the alleged scam.
“MEXC is going shameless mode these days, many users have complained that their funds are frozen & taken. I got wiped out for 92k USDT too. I made my profit through several news trades, 5x’ed my bag on MEXC futures in 15 days, and then my account was frozen. I contacted the support and submitted documents, and then the second day, funds in my account were TOTALLY WIPED OUT along with the order history.” – A trader complaint on X (formerly Twitter)
The user also shared screenshots from the customer support team which claimed that his account was frozen because of “abnormal trading activities” in his account and associated accounts.
This would have made sense if it was an isolated incident, but social media is full of similar complaints. How is everyone suddenly engaged in questionable trading activity?
When the issue broke out, there were speculations about the exchange shutting down. Some suggested that the MEXC crypto exchange is not only corrupt but also bankrupt. The exchange issued an official post denying those reports. Furthermore, X deactivated the account of the exchange’s former CEO, John Chen Ju, leading to further speculations and scam allegations. Although the exchange tried to deny this, screenshots show that they had previously tagged the same account. MEXC has since deleted this post and issued an explanation.
Trader loses $14,000 thanks to alleged scam
In another alarming incident, a trader reported losing around $14,000 due to the alleged scam that the MEXC crypto exchange runs. He used the exchange to trade in crypto and made serious profits in a short time. This success did not go well with the exchange, resulting in the confiscation of his funds.
“Back in November 2023, I started Futures trading on this account and traded very safely. I started with just $300 and grew it to over $14,000 in almost 2 months. MEXC didn’t like that…As I was also seeing some FUD about MEXC on Twitter, I tried to withdraw, but the same restriction was there,” he wrote.
Since he was locked out, he couldn’t adjust his position, leading to almost complete liquidation of his holdings.
The trader is now preparing to file a lawsuit against the alleged MEXC scam. However, the exchange has refused to provide a registered address to be included in the suit.
Meanwhile, according to reports, the centralized cryptocurrency exchange, established in 2018, is headquartered in the Seychelles.
The post MEXC Crypto Exchange Faces Fresh Scam Allegations appeared first on CoinChapter.
