MEXC’s Enhanced Risk Controls Spark Tensions With KOL Over Regulatory Risks

Exchange MEXC is doubling down on risk control measures as trading platforms worldwide face mounting pressure to combat fraud. The company announced new enforcement steps aimed at cracking down on fraudulent syndicates, bot-driven trading, and suspicious capital flows. These actions have also sparked tension with a prominent KOL, whose account was frozen amid compliance-related risks.

According to the company, more than 17,000 accounts were restricted during July and August, representing over 3,000 fraud syndicates. The use of AI-powered risk models, MEXC said, has helped reduce fraudulent activity by 62% compared to earlier periods.

The platform also implemented stricter compliance checks on accounts with unusual fund movements. Some accounts remain under restriction after failing to meet advanced KYC standards, with reports filed to regulators in recent months.

MEXC’s moves coincide with a dispute involving TheWhiteWhale, a crypto influencer who alleged his account was frozen without cause and launched a $2 million campaign against the exchange. MEXC countered with a statement suggeting the account may be tied to compliance risk, underscoring the challenges exchanges face in balancing regulatory enforcement with user expectations. 

Similar dilemmas have also been faced by other major exchanges, including OKX. According to MEXC’s statement, compliance and legal risks refer to accounts linked to unusual funds, such as those associated with criminal activity, sanctioned entities, or stolen assets.

MEXC has reinforced restrictions on bot trading in its futures markets after detecting a surge in violations of platform rules. The exchange said the measure is intended to protect retail users, who are often at a disadvantage against automated systems. Between July and August, 2,008 bot accounts were identified and restricted — a 24% increase compared with the previous two months.

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