Crypto Exchange MEXC Accused of Freezing Accounts and Seizing Funds Amid 'Irregular Activities' Allegations
Summary:
MEXC, a crypto exchange platform, is facing allegations of seizing funds and suspending numerous accounts due to "irregular trading activities." Users have expressed frustration, some reporting significant losses, and several accounts note that MEXC invoked its right to freeze accounts and recoup losses. MEXC has yet to comment, but its terms of service assert its right to take these actions without user consent or prior notice.
Accusations are flying as crypto trading platform MEXC is said to have confiscated funds and suspended numerous investor accounts. Repercussions of these actions are said to be due to "irregular trading activities," as reported by X (previously known as Twitter). Distressed users of the exchange platform have been airing their grievances since December 16. One such user going by the name Vida, divulged a loss of $92,000 in Tether (USDT) tokens after successful trades on MEXC's futures market for over a fortnight. In Vida's words, "After reaching out to their customer support and submitting the necessary documents, my account was unexpectedly depleted of all its funds the very next day, along with the transaction history.” MEXC's customer service allegedly confirmed that their risk control system identified issues with the transactions which warranted a subsequent investigation by their team. The response from MEXC, as reported by Vida included, "Your raised concerns about account restrictions and issues with futures trading/assets have been comprehensively reviewed by our risk control system and personnel. We've determined that irregular trading activities occurred in your account and associated accounts, hence in line with our terms of use, we've initiated processes to recoup losses." Over the past few days, similar accounts have surfaced from several other traders. According to one user who has been facing issues since September, the platform froze their account in the wake of an $8,000 transaction, and this user mentioned that friends utilizing MEXC for trading have also encountered identical problems recently. "Considering the number of friends whom accounts have been frozen, it's around 10%," the user wrote. Despite efforts from Cointelegraph to reach MEXC, no immediate response has been received. MEXC's service agreement outlines that the exchange "reserves the right to probe any violation of the Agreement, single-handedly decide if the Agreement has been breached, and invoke actions under the pertinent rules without seeking your consent or providing prior notice.” Actions could range from blocking or shutting down order requests, freezing accounts, referring incidents to law enforcement, making public supposed violations and undertaken measures, along with expunging any violating information. MEXC is a centralized cryptocurrency exchange, founded in 2018 and located in Seychelles. The exchange's website specifies that it does not offer trading services in the United States, Canada, or China, but allows trading of over 2,000 pairs. Some have raised questions with a magazine article asking: Deposit risk: What are cryptocurrency exchanges genuinely doing with your funds?
Published At
12/23/2023 10:43:35 PM
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