tl;dr
MEXC, a global cryptocurrency exchange, is facing widespread user complaints over sudden account freezes and withdrawal restrictions without clear explanations. High-net-worth users report prolonged pending withdrawal requests and inadequate customer support. The exchange previously froze over 1,500...
MEXC, a global cryptocurrency exchange, finds itself under intense scrutiny as numerous users and industry observers report widespread account freezes and withdrawal restrictions. These actions, often lacking clear explanations, have sparked concerns about the exchange’s solvency and potential Ponzi-like operations. High-net-worth individuals, some holding balances in the seven- to eight-figure range, are among those affected, with many describing a lack of meaningful customer support beyond automated responses.
Users recount experiences of sudden account lockdowns following withdrawal attempts, with requests lingering in “pending” status for days without resolution. This has generated a swell of public complaints and allegations suggesting systemic issues within MEXC’s management and operational practices. Despite these criticisms, MEXC has not provided a formal statement addressing these growing accusations.
Previously, MEXC announced the freezing of over 1,500 accounts linked to coordinated market manipulation strategies involving spoofing, self-trading, and algorithmic tactics with turnovers exceeding $20 million daily. The exchange framed these moves as necessary to mitigate broader systemic risks from evolving manipulation tactics in the crypto ecosystem. Yet, critics argue that the vague reasoning behind “abnormal activity” flags serves as a broad tool for delaying or denying legitimate withdrawals, undermining user trust.
The timing of these complaints aligns with heightened community sensitivity triggered by similar issues at other exchanges. Notably, Coinbase faced public backlash over account freezes but subsequently reported an 82% reduction in such incidents after CEO Brian Armstrong acknowledged the problem and implemented reforms. The stark contrast in responses between Coinbase and MEXC has further intensified suspicion, with some experts warning that MEXC’s pattern of account restrictions exhibits classic indicators of pyramid or Ponzi schemes, potentially heralding serious consequences for the exchange’s future.