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MEXC Crypto Exchange Faces User Backlash Over Frozen Assets

MEXC faces backlash as traders report frozen assets and blocked accounts, questioning the exchange's terms of service.
MEXC Crypto Exchange Faces User Backlash Over Frozen Assets

MEXC, a Seychelles-based cryptocurrency exchange, has come under scrutiny following multiple allegations from traders about frozen assets and account blocks. The accusations, intensifying since December 16, suggest that the exchange is enforcing its terms of service in a way that users find controversial.

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Sudden Account Restrictions Spark Concern

Traders are using the platform X to voice their concerns and report sudden restrictions on their accounts following profitable trades. A notable case is that of a pseudonymous trader, Vida, who claims a loss of $92,000 in Tether (USDT) after successful futures market trades on MEXC. The trader’s account and order history were allegedly wiped clean following contact with MEXC’s support team.

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MEXC Cites “Abnormal Trading Activities”

MEXC’s support team acknowledged that their risk control system flagged Vida’s account, leading to a thorough investigation by the staff. The exchange, citing “abnormal trading activities” in the account and associated accounts, invoked its terms of service to recover the alleged losses. This stance has been consistent in similar reports from traders facing account issues.

A user who has been facing problems since September disclosed that their account was frozen following an $8,000 trade. Anecdotal evidence suggests that nearly 10% of the trading community around this individual has experienced similar issues with MEXC. The pattern of account restrictions and fund seizures has fueled a growing dissatisfaction among MEXC users.

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MEXC’s Terms of Service Under Spotlight

MEXC, established in 2018, outlines in its terms of service the authority to unilaterally determine agreement violations and take action without user consent. These actions may include account freezing, order blocking, and reporting incidents to authorities. However, the recent surge in complaints raises questions about the transparency and fairness of these practices.

The controversy surrounding MEXC’s handling of trader accounts highlights the complexities and challenges in the cryptocurrency exchange. As traders continue to express their grievances, the crypto community watches closely, seeking clarity and fairness in exchange practices. MEXC’s response to these allegations remains critical in maintaining its reputation and trust among its users.

Read Also: Bitcoin at Crossroads: Analyst Eyes $43k Level for Price Direction

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Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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