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Global cryptocurrency exchange MEXC has published its July-August 2025 Bi-Monthly Security Report, citing new milestones in reserves, user protection and progress in fraud prevention and user asset recovery.
2,000+ bot accounts, $4,9 million in illicit funds stoppes, MEXC report says
MEXC's firm stance against market manipulation continued over the reporting period. The platform announced in the report that during the July-August period, it froze more than $4.9 million USDT linked to 48 fraud cases and took action against manipulative and abusive trading activities.
As a result, more than 17,000 collusive accounts and 2,008 bot-driven trading accounts were restricted in a firm response to market exploitation attempts. The company also processed 593 user assistance and 121 official freeze requests, supported by law enforcement documentation, showing active engagement with both users and authorities in addressing suspicious activity. Nearly $1 million in user assets were manually recovered in cases where users had mistakenly transferred assets to incorrect wallet addresses, with a total of 2,211 cases resolved, ensuring that users regained access to their funds.
Chief Operating Officer Tracy Jin yet again reaffirms MEXC’s commitment to upholding the values of transparency, accessibility and compliance:
MEXC is committed to setting a higher standard for security and transparency in the digital asset industry
The platform also announced that its insurance fund, which protects futures traders from losses during liquidation and prevents auto-deleveraging when market volatility causes positions to collapse, reached an all-time high of $559 million USDT in July, marking the largest balance in the platform’s history since its inception. MEXC’s disclosure is significant in the context of crypto derivative trading.
Futures markets carry inherent risks, particularly when traders use high leverage. Insurance funds are designed to absorb losses that exceed collateral.
MEXC's proof of reserve remains high, hits 130%
MEXC’s PoR figures remain above 100%, with Bitcoin reserves showing the largest buffer at nearly 130%. Since the collapse of FTX, exchanges have been under heightened pressure to demonstrate solvency periodically. PoR disclosures have become an industry norm, though they remain subject to methodological debates.
MEXC's latest report provides insights into how exchanges are responding to ongoing market scrutiny and calls for more communication, accountability and transparency. The scale of the restricted accounts highlights the persistent challenges of market abuse in digital asset trading.
Similarly, the freezing of nearly $5 million in illicit funds reveals that fraudulent activity on exchanges remains a concern. In this sense, MEXC's report is more than a snapshot of internal metrics but also a contribution to the ongoing conversation about what transparency and security should look like in the maturing digital asset ecosystem.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team