The crypto world has been turned upside down by the increasing controversy surrounding the MexC crypto exchange. For example, shady practices and frozen assets were reported, putting Mexico at the center of the storm. The exchange is facing serious allegations and user dissatisfaction.
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$92,000 worth of cryptocurrencies have evaporated
The Seychelles-based crypto exchange MEXC is currently being criticized for questionable activities. Users claim that their accounts have been blocked and that their funds have been confiscated. While MEXC justifies these measures with unusual trading activity, it has raised concerns in the crypto world.
The first signs of problems at MexC became known in mid-December. In recent days, numerous users have gathered on X (formerly Twitter) accusing MEXC of blocking their accounts, confiscating their funds and ignoring support requests.
According to a Message on X Through a merchant named Vida, the shady activity resulted in his account being suspended. Additionally, his trading profit of $92,000 was frozen and his order history was deleted.
To make matters worse, the exchange’s customer service department was unable to provide a substantive explanation for the account seizure. Customer service was limited to claiming that the account was simply experiencing unusual trading activity.
Vida backed up this claim with screenshots of his conversation with MEXC support, in which the exchange confirmed the account closure and the outcome of the investigation conducted by its team.
MexC the new FTX?
According to Vida, MexC is involved in the falsification of its liquidity and acts as a market maker. The exchange often relies on users’ transactions and acts as a market maker itself. However, if a trader makes too much profit, he becomes a problem for the stock market. Sometimes the profit is so large and the shortfall that the exchange has to pay the trader is so large that the trader closes the account immediately.
The retailer also posted screenshots of it Stock market order book, which appeared to be thicker than those of other exchanges, including the world’s largest exchange Binance. Finally, he urged users to leave the exchange immediately as it is in trouble, similar to FTX.
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