Seychelles-based cryptocurrency exchange MEXC has come under fire after traders reported issues such as frozen assets and blocked accounts. The complaints began to increase from December 16, with users suggesting that the exchange was enforcing its terms of service in a manner which they did not agree with.
One trader, Vida, claimed to have lost $92,000 in Tether (USDT) after successful futures market trades on MEXC, and their account and order history were reportedly wiped clean following contact with the exchange’s support team.
MEXC’s support team stated that their risk control system had flagged Vida’s account, leading to an investigation, and the exchange cited “abnormal trading activities” as the reason for their decision to invoke their terms of service and recover the alleged losses.
Similar reports have come from traders who have experienced abrupt restrictions on their accounts following profitable trades. One user who has been experiencing problems since September disclosed that their account was frozen following an $8,000 trade, and anecdotal evidence suggests that nearly 10% of the trading community around them has had similar issues with MEXC.
MEXC, established in 2018, outlines in its terms of service that they have the right to unilaterally determine agreement violations and take action without user consent, which could include freezing accounts, blocking orders, and reporting incidents to authorities. The sudden surge of complaints has raised questions about the transparency and fairness of these practices.
The current situation with MEXC has put the spotlight on the complexities and difficulties of cryptocurrency exchanges. As traders continue to voice their grievances, the crypto community is keeping a close eye, hoping for clarity and justice. The way MEXC responds to these allegations will be crucial in maintaining their reputation and the trust of their users.