MEXC investigates complaints from users alleging frozen funds

MEXC received another wave of user reports, claiming accounts were locked without recourse. The exchange renewed its investigation to give a reason for the locked accounts. 

MEXC, one of the most widely used global exchanges, is once again receiving social media reports of locked user accounts. Traders have complained that once they achieved a more significant sum in their account, their funds were held, and withdrawals were banned. 

One user claimed MEXC held $300,000 in a locked account, requiring a 40% haircut to release the funds. 

“MEXC locked my account holding approx. $300,000. I fully complied with their verification process and submitted every document they requested.”

“Days later, their support lead contacted me directly on my registered phone number and demanded 40% of my funds in exchange for unfreezing my account,” showed a recent post on X. However, MEXC denied the event happened, calling the news a tactic for farming traffic. 

The original user also shared their experience, claiming MEXC was deliberately rug-pulling successful traders by refusing withdrawals. 

The exchange has responded to Cryptopolitan, claiming that they could not identify the user ID based on the social media posts. Crypto investigator ZachXBT also warned that the user reports may be a tool to drive engagement and possibly inject crypto scams. Alongside the reports of frozen funds, scammers posted fake links on behalf of MEXC. 

The exchange is currently investigating the claims and seeking to determine if they correspond to a real user.

“We are actively attempting to contact the user mentioned in these reports to investigate the claims. However, to date, no verifiable UID or concrete evidence has been provided by the individual to support these allegations,” responded MEXC in a statement.

MEXC also held funds for alleged theft

Another user who complained about locked funds reported $20,999 in USDT. The user ID was discovered by investigators. 

In this case, the user ID was only used as a screenshot by the investigator. A further check by MEXC showed the ID was related to funds with a suspicious origin.

“Our team has verified that this account is involved in the theft of funds. This matter has been escalated to, and is being managed by, the relevant compliance and risk control departments,” stated MEXC.

MEXC has received multiple social media reports of withholding user funds. The problems are sometimes caused by users from blocked jurisdictions or by the internal process of MEXC. 

As Cryptopolitan reported, one of the high-profile cases came from the trader White Whale. He called out MEXC on multiple occasions until the funds were released. His biggest complaint was that the account was fully verified, yet MEXC required an in-person visit to release funds.

Other users have reported making deposits, which were then not reflected in their accounts. The White Whale has also expressed skepticism about the actual reserves of MEXC. 

MEXC currently reports over 9,087 BTC in its reserves after significant inflows in the past few weeks. 

The exchange is still facing skepticism, as it is one of the few remaining unregulated markets, working for an international audience of traders, and potentially posing more significant risks. MEXC also has until the end of June to become MiCAR compliant, or face limits to its EU operations.

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