MEXC reveals trading anomalies jumped 200% in Q1

Mint

11-07-2025

Victoria, Seychelles – 11th July 2025 – MEXC, a leading global cryptocurrency exchange, has released a Q1 2025 report revealing a 200% quarter-over-quarter increase in detected trading fraud. The findings show a noticeable rise in socially engineered market manipulation, with fraudulent activities most concentrated in South Asia, Indonesia, and the Commonwealth of Independent States (CIS) region.
The report details that MEXC identified over 80,000 syndicated fraud attempts in the first quarter, uncovering more than 3,000 individual fraud syndicates. These illegal activities primarily involved coordinated wash trading and market manipulation schemes. In response, MEXC is intensifying its risk control actions to preserve the integrity of its trading environment and safeguard its global user base from malicious actors.
The surge in these regions corresponds with rapid crypto adoption, which has often outpaced the growth of financial literacy. Malicious actors are taking advantage of this gap by running so-called "educational" groups on social platforms like Telegram and YouTube. These groups often pretend to be investment communities but are actually coordinated efforts to mislead unsuspecting traders, particularly newer and younger investors, into pump-and-dump schemes.
'While 2021 was marked by DeFi exploits, 2025 is increasingly characterized by socially engineered market manipulation,' said Tracy Jin, Chief Operating Officer of MEXC Research. 'We've observed a growing number of so-called 'educational' trading groups that appear to be coordinated efforts to mislead users. This trend highlights the importance of user education and protection, especially for younger investors who may be more likely to believe persuasive but harmful narratives.'
MEXC's multi-layered risk control framework, which makes use of real-time automated detection and expert human review, is identifying and restricting accounts that exhibit abnormal order patterns and other suspicious behaviors. These necessary actions align with global anti-money laundering guidelines and internal protocols designed to create a fair trading arena for all compliant users.
To directly counter the financial risks faced by users, MEXC has instituted the $100 million Guardian Fund. This fund offers a vital safety net for users impacted by severe security threats. In a move toward full transparency, the wallet addresses for the Guardian Fund are publicly accessible, allowing anyone to monitor its balance and transactions on the blockchain.
Demonstrating its commitment to a secure and trustworthy trading environment, MEXC has initiated the "Proof of Trust" campaign. This global program combines security protocols, including regular Proof-of-Reserves disclosures and strategic partnerships with leading blockchain auditors like Hacken, with extensive user education.
The exchange's ecosystem vision also shows how much it cares about the health of the digital asset space. With the goal of supporting innovation and growth across the industry, MEXC has committed $330 million to ecosystem development. Housing a selection of over 3,000 listed tokens, MEXC continues to be a destination for a diverse range of digital assets while maintaining its focus on security and market integrity.The exchange continues to strengthen its security infrastructure and promote safe trading practices through various user protection measures and educational initiatives, especially in regions most affected by the recent wave of fraud.
Founded in 2018, MEXC is committed to being "Your Easiest Way to Crypto." Serving over 40 million users across 170+ countries, MEXC is known for its broad selection of trending tokens, everyday airdrop opportunities, and low trading fees. Our user-friendly platform is designed to support both new traders and experienced investors, offering secure and efficient access to digital assets. MEXC prioritizes simplicity and innovation, making crypto trading more accessible and rewarding.
Disclaimer: Readers are advised that Crypto products and NFTs are unregulated and involve significant risks. There may be no regulatory recourse for losses arising from such transactions.
Hindustan Times/HTDS shall not, in any manner, be responsible or liable for the content of the article, advertisement, including the views, opinions, announcements, declarations, or affirmations expressed therein and is absolved from any legal action or enforceable claims. This content is for informational and awareness purposes only and does not constitute financial advice.
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