MEXC Crypto Exchange Denies Claims of Unjustly Confiscating Users' High Profits
Summary:
MEXC, a top-tier crypto exchange, denies allegations of purloining high profits from its users, claiming that its clawback policies only protect against potential market manipulation. The platform maintains that standard traders will not be affected. Yet, several customers complain of unjust fund reductions from their accounts. Crypto trader, “Al Gore Rhythms,” alleges that MEXC froze his account and erased funds after successful crypto swaps. He also alleges that the platform deleted his entire transaction history after he requested it for tax purposes. Similarly, several other users have made related accusations. MEXC is yet to officially respond to these allegations.
Cryptocurrency exchange MEXC has refuted accusations of confiscating unusually high profits from its customers. The platform recently clarified that its clawback policies, implemented to safeguard against suspected market manipulations, would not affect users conducting regular trading activities. Yet, some clients have reported unjust removal of funds from their MEXC accounts. As per CoinMarketCap rankings, MEXC ranks as the 11th largest centralized crypto exchange by trading volume, averaging around $1.3 billion in daily spot trading volume. The platform's perpetual futures trading section trades over $7 billion daily.
An MEXC user, known under the pseudonym “Al Gore Rhythms,” claimed in a February conversation with Cointelegraph that the exchange suspended his account and deleted some of his funds following several cryptocurrency perpetual futures trades. His account allegedly stopped functioning with various altcoin perpetual trades marked up by 380% to 2,200%. Shortly thereafter, all login attempts resulted in error messages stating that his account access was limited due to "risk control".
"Al Gore Rhythms" later allegedly found out that about $33,658 was deducted from his account. According to him, this deduction did not appear in his transaction history even though his account balance showed a reduction from an initial $75,054.54 to $41,396.54. He reported that when he reached out to MEXC for assistance, representatives of the exchange informed him that they had initiated measures to recoup losses resulting from "abnormal trading activities" in his account.
Following this response, the user requested for a transaction record, citing tax-related reasons. He claimed that MEXC denied him this information and later wiped out his entire transaction history. Cointelegraph could not independently verify these allegations or the authenticity of the video and screenshot linked to the same account.
The user further revealed that his further attempts to get more details from MEXC's customer service were futile. They allegedly told him that the funds had been used to cover the exchange's losses.
In a similar light, another user Coach K Crypto, alleged that MEXC unjustly deducted funds from his account. In February, Coach K Crypto claimed in a post from The Gold Pod co-host, Mason Versluis, that MEXC had withdrawn $330,000 from his account citing "abnormal profit".
Responding to the post, MEXC insisted that its risk control policy doesn't affect regular users embarking on "normal trading activities". A spokesperson for the exchange added that users feeling unfairly treated could lodge an appeal.
Another MEXC user from Pakistan reached out to Cointelegraph in February claiming his trades were frozen by the exchange, resulting in liquidation. He claimed the freeze hindered him from exiting his trade, thereby incurring avoidable losses. He also alleged MEXC offered to compensate him $3,000 to delete posts complaining about the incident, but later withdrew the offer when the posts started getting lesser views.
Crypto trader, Hashmoney, also reported that their MEXC account was frozen rendering them unable to hedge positions, decrease margin or execute any trading activity. Following the freeze, Hashmoney claimed their entire futures account was liquidated clearing over $11,000. They also alleged to have had $600 remaining on the account, but the freeze prevented them from withdrawing it. MEXC responded to Hashmoney's thread saying an investigation was underway and advised Hashmoney to get an update from customer service.
When contacted for a comment, MEXC did not respond by press time. In a blog post on the official MEXC website, it was stated that "abnormal trading behavior" is activities like making and canceling multiple orders (spoofing) or using multiple accounts to fraudulently boost volume via inter-trading. Al Gore Rhythms dismissed these claims saying he neither had multiple accounts nor engaged in spoofing.
Several users made similar accusations against MEXC in December. At that time, MEXC dismissed the allegations as misinformation andamp; distorted by individuals with personal agendas. It added that clawbacks are only enforced after thorough review and in line with user agreements.
Published At
3/6/2024 11:00:00 PM
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