MEXC Reaffirms Solvency Amid Rumors and User Complaints

Cryptocurrency exchange MEXC is actively responding to a wave of rumors concerning its financial stability. In a recent statement, the exchange affirmed that all user funds are entirely secure and fully backed. This clarification comes in the wake of accusations on X (formerly Twitter) suggesting that MEXC was experiencing a cash shortage and preventing users from withdrawing their assets.

According to an official announcement from MEXC, the exchange's Proof of Reserves (PoR) data indicates that all major assets are backed by more than 100%, demonstrating the exchange's sound financial standing. MEXC also stated that users can independently verify this information through its updated Merkle Tree data, which is scheduled for a refresh later tonight.

The statement further noted that MEXC's PoR information is accessible on various platforms, including CoinMarketCap, CoinGecko, and DefiLlama. The company also reaffirmed that its $100 million Guardian Fund continues to protect user assets, with all associated wallet addresses available for public inspection.

MEXC Addresses Transparency Amidst Increased Withdrawals

Whale Insider reported that MEXC released its statement amidst a period of significant withdrawals from the platform. While these developments have drawn attention within the cryptocurrency community, MEXC has emphasized that its operations are proceeding normally. The exchange stated on X, "All user assets are fully backed, and our Proof of Reserves (PoR) data shows that major assets are backed at over 100%."

Data provided by Whale Insider indicates a sharp increase in Bitcoin's price, rising from below $4,000 in 2019 to approximately $109,900 by late 2025. During this period, withdrawal activity from the exchange saw notable spikes, particularly from mid-2024 onwards. This trend suggests a potential investor movement of funds to private wallets for long-term storage, possibly influenced by growing market uncertainty.

Such withdrawal patterns often reflect investor caution or a decline in confidence towards the exchange. Therefore, MEXC's assurances are particularly timely for the industry, where transparency and user trust are paramount for sustained operation.

Allegations Spark Online Criticism

While MEXC works to reassure its users, new controversies have emerged online. A pseudonymous user on X, known as Mystral_777, published a series of 10 posts alleging serious misconduct by the exchange.

The thread detailed accusations ranging from $10 million in frozen withdrawals to high listing fees and executive impropriety. The user presented screenshots, direct messages, and purported internal communications, though none of these claims have been independently verified by law enforcement or major regulatory bodies.

According to the thread, several cryptocurrency projects, including CateCoin, were reportedly charged up to $60,000 for listing, with additional payments requested before launch. Mystral also alleged that projects refusing these extra payments had their tokens delisted. A purported email from an MEXC listing manager, included as a screenshot, urged CateCoin to respond promptly for "marketing exposure."

A more significant accusation involved reports of blocked user withdrawals. Mystral claimed that over $10 million in user funds were inaccessible without explanation. Similar accounts were shared by multiple users across social media platforms.

MEXC Responds to Escalating Criticism

In a related development, MEXC faced another challenge after freezing $3 million belonging to a trader identified online as White Whale. The trader accused the exchange of improperly withholding his funds, while MEXC cited potential "suspicious activities" or breaches of its terms of service.

Following public backlash, MEXC's Chief Strategy Officer, Cecilia Hsueh, issued a direct apology on X, acknowledging internal mismanagement. "We fucked up," she stated, admitting to systemic issues within the company's operational and customer service frameworks.

"Since I joined MEXC 2 months ago I’ve been fighting behind the scenes to get MEXC to change," Hsueh explained. "We experienced rapid growth—a few years ago, we were a relatively small exchange, but given our current scale, our risk management, operations, and PR teams have not kept pace."

Hsueh further indicated that MEXC's leadership had acknowledged the necessity for substantial reforms. She confirmed that the exchange would be revising its risk management and customer service protocols. Additionally, plans are underway to introduce a "fast-track channel" designed to assist traders in promptly resolving issues related to frozen assets.