Users report funds held by MEXC, the exchange launched investigation on the claims

MEXC received several user reports on social media, claiming accounts were locked without recourse. The exchange renewed its investigation to give a reason for the locked accounts. 

MEXC, one of the most widely used global exchanges, is once again receiving social media reports of locked user accounts. Traders have complained that once they achieved a more significant sum in their account, their funds were held, and withdrawals were banned. 

One user claimed MEXC held $300,000 in a locked account, requiring a 40% haircut to release the funds. 

“MEXC locked my account holding approx. $300,000. I fully complied with their verification process and submitted every document they requested.”

“Days later, their support lead contacted me directly on my registered phone number and demanded 40% of my funds in exchange for unfreezing my account,” showed a recent post on X. However, MEXC denied the event happened, calling the news a tactic for farming traffic. 

The original user also shared their experience, claiming MEXC was deliberately rug-pulling successful traders by refusing withdrawals. 

I got rugged by @MEXC_Official pic.twitter.com/KTZAKEGrLi

— 🏴‍☠️Cepi (@CepeGRS) February 21, 2026

The exchange has responded to Cryptopolitan, claiming that they could not identify the user ID based on the social media posts. Crypto investigator ZachXBT also warned that the user reports may be a tool to drive engagement and possibly inject crypto scams. Alongside the reports of frozen funds, scammers posted fake links on behalf of MEXC. 

The exchange is currently investigating the claims and seeking to determine if they correspond to a real user.

“We are actively attempting to contact the user mentioned in these reports to investigate the claims. However, to date, no verifiable UID or concrete evidence has been provided by the individual to support these allegations,” responded MEXC in a statement.

MEXC also held funds for alleged theft

Another user who complained about locked funds reported $20,999 in USDT. The user ID was discovered by investigators. 

In this case, the user ID was only used as a screenshot by the investigator. A further check by MEXC showed the ID was related to funds with a suspicious origin.

“Our team has verified that this account is involved in the theft of funds. This matter has been escalated to, and is being managed by, the relevant compliance and risk control departments,” stated MEXC.

MEXC has received multiple social media reports of withholding user funds. The problems are sometimes caused by users from blocked jurisdictions or by the internal process of MEXC. 

As Cryptopolitan reported, one of the high-profile cases came from the trader White Whale. The issue has since been settled, after the trader also cooperated to improve the MEXC verification and recovery process.

Other users have reported making deposits, which were then not reflected in their accounts. The White Whale has also expressed skepticism about the actual reserves of MEXC. 

MEXC currently reports over 9,087 BTC in its reserves after significant inflows in the past few weeks. 

The exchange is still facing skepticism, as it is one of the few remaining unregulated markets, working for an international audience of traders, and potentially posing more significant risks. MEXC also has until the end of June to become MiCAR compliant, or face limits to its EU operations.