Centralized Exchange FREEZES Accounts, The Next FTX-Style Crisis?

December 24, 2023 1:21 pm Comments

The MEXC exchange could potentially be the next FTX-style collapse.

Users are reporting widespread withdrawal issues on social media and have accused the exchange of freezing their assets and locking them out of their accounts.

Spokespeople for MEXC claimed that the account freezing was due to ‘unusual trading activity’, but clients of the platform just aren’t buying it and have sounded the alarm on the Seychelles-based exchange.

MEXC customers are now spreading the word to get funds off of the platform ASAP. This is a developing story, and ProCoin News will bring you more updates as they become available. Here are just some of the numerous reports from the crypto community:

Bitcoinist shared one individual’s account of the suspicious actions of the MEXC exchange:

According to a post on social media platform X by a trader known as Vida, the shady activity led to his account being locked out, his $92,000 trading profit frozen, and the order history wiped out.

To make matters worse, the exchange’s support failed to provide a valid explanation for the account seizure, only claiming abnormal trading activities on the account.

Another individual accused online influencers of conspiring with MEXC: “Influencers are trying to protect MEXC because they have no problems with MEXC. No shit Sherlock you have the number of 1000 MEXC agents, you won’t have any problems. They are stealing from normal people to pay your salary so sit down.”

Cryptopolitan provided some of the exchange’s broad terms of service:

In the face of these allegations, MEXC’s stance remains firm. The exchange, established in 2018 and headquartered in Seychelles, operates on a set of terms that grant it broad authority to monitor and act upon any violations of its agreement.

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