A new report from crypto exchange MEXC has shed light on what it calls a “global fraud triangle”, reflecting a concentration of coordinated crypto-related criminal activity emerging from India, Indonesia, and countries in the former Soviet bloc. These three regions shared 46,311 suspicious accounts among them, flagged on the platform in the past two months.
According to the report, MEXC revealed 6,184 distinct fraud rings operating across the triangle. MEXC’s findings are part of a broader risk intelligence effort launched as a response to rising cases of market manipulation, synthetic identity fraud, and phishing scams.
MEXC’s fraud response unit processed 709 user assistance requests and enforced 124 law enforcement freeze orders. Many of these numbers are linked to accounts within these high-risk jurisdictions. While individual incidents vary, common patterns include fake ID submission, hijacked phone numbers, and deepfake-enhanced KYC bypass attempts.
MEXC’s report also highlighted the $100 million Guardian Fund as a means for a protective layer for users affected by such exploits. Additionally, the exchange continues to publish real-time Proof-of-Reserves data, listing wallet holdings that exceed all user liabilities. This is in line with emerging global compliance standards such as the EU’s MiCA and South Korea’s solvency verification bill.
Analysts say the convergence of several factors, like low-cost internet, lax enforcement, and rapid crypto adoption, has made these regions ideal launchpads for fraud rings. The findings point to growing pressure on exchanges to not only block illicit activity but also engage directly with regulators and law enforcement across jurisdictions to stem systemic abuse.
