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Allegations of unjust deductions and frozen accounts plague the MEXC crypto exchange

TL;DR

  • MEXC, a big crypto exchange, faces claims of taking users’ profits and freezing accounts unfairly.
  • Users say their funds disappeared without explanation despite MEXC denying any wrongdoing.
  • Despite assurances, MEXC’s actions raise questions about fairness and transparency in the crypto world.

Allegations of unjust deductions and frozen accounts have surfaced against MEXC, the 11th-largest centralized cryptocurrency exchange by trading volume. Despite its denial of accusations regarding the “stealing” of customer profits, several users have come forward with claims of funds being deducted and accounts being restricted without proper explanation or recourse.

Claims of unjust deductions

Multiple users, including those with the screen names “Al Gore Rhythms” and “Coach K Crypto,” have reported significant deductions from their MEXC accounts after experiencing unusually large profits. 

Al Gore Rhythms alleged that his account was frozen, leading to the deletion of funds amounting to $33,658, which was not reflected in his transaction history. Coach K Crypto claimed $330,000 was deducted from their account due to “abnormal profit,” as termed by MEXC customer service, though the exchange later clarified it as a “clawback” policy.

Frozen accounts and losses

Furthermore, users have reported instances of their accounts being frozen, preventing them from executing trades to prevent losses. One user, Hashmoney, detailed how their account freeze resulted in a loss of over $11,000, with additional deductions incurred from daily fees. 

Despite attempts to resolve the issue with customer service, they were only allowed to add to their position for a limited time, ultimately leading to liquidation.

In response to these allegations, MEXC has maintained that its risk control policies target abnormal trading behavior, such as spoofing or artificially inflating volume using multiple accounts. 

The exchange claims these measures do not affect ordinary users engaging in normal trading activities. Additionally, MEXC asserts that an appeals process is available for users who believe the exchange’s policies have unjustly impacted them.

Continued scrutiny and lack of resolution

Despite assurances from MEXC, users continue to express dissatisfaction with the exchange’s handling of their accounts and funds. 

Some have alleged that MEXC refused to provide transaction records or deleted their transaction history upon request, hindering efforts to understand the basis for deductions. 

Moreover, attempts to seek compensation or resolution have been met with mixed responses, with some users claiming offers were rescinded over time.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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