Seychelles-based crypto alternate MEXC has come below hearth for allegedly locking customers out of their accounts and seizing their funds. These actions, which the alternate claims have been motivated by irregular buying and selling actions, have sparked considerations from the crypto group. Many customers have flocked to social media platform X in latest days to accuse MEXC of locking them out of their accounts, seizing their funds, and failing to reply to assist requests.
Allegations Of MEXC Locking Customers Out Of Accounts
MEXC customers have just lately come ahead with some disturbing accusations in opposition to the alternate. The accusations, which began on December sixteenth, coupled with the shortage of response from MEXC, have had crypto buyers questioning concerning the shady actions of the alternate.
In accordance with a publish on social media platform X by a dealer generally known as Vida, the shady exercise led to his account being locked out, his $92,000 buying and selling revenue frozen, and the order historical past worn out. To make issues worse, the alternate’s assist failed to offer a legitimate clarification for the account seizure, solely claiming irregular buying and selling actions on the account. Vida backed up this declare with screenshots of his dialog with MEXC’s assist, the place the alternate acknowledged the account closure and the result of the investigation performed by their staff.
As of immediately, the market cap of cryptocurrencies stood at $1.631 trillion. Chart: TradingView.com
It will appear this development has been happening for some time, with numerous different customers complaining of them being locked out of their accounts. Vida additionally shared screenshots of the alternate’s Telegram group which confirmed comparable complaints from different customers.
Mexc goes shameless mode nowadays, many customers have complained on X that their funds are frozen & taken. I bought worn out for 92k USDT too.
I made my revenue by a number of information trades, 5x’ed my bag on mexc futures in 15 days, after which my account was frozen.
I contacted… pic.twitter.com/urlpQ1e664
— Vida (@Vida_BWE) December 22, 2023
Attainable Clarification
Whereas explaining additional, Vida famous a attainable clarification for the account closures. In accordance with the dealer, MEXC is concerned in shady actions which embrace forging its liquidity and market making. The alternate typically bets in opposition to the consumer’s trades, enjoying the position of market makers themselves. Nonetheless, if a dealer makes an excessive amount of revenue, they develop into an issue for the alternate. Generally the revenue and the deficit the alternate has to pay the dealer is so huge that it closes the account forthrightly.
The dealer additionally posted screenshots of the alternate’s order e-book, which seemed to be thicker than different different exchanges, together with Binance. Nonetheless, Vida claimed this was solid by the alternate. He ended the thread by urging customers to exit the alternate directly as it’s at the moment on its option to ending up like FTX.
So as to add insult to damage, MEXC has didn’t make any feedback on the complaints on social media. In accordance with the alternate’s phrases of service, it reserves the appropriate to taking measures in recovering any earnings obtained in violation of its consumer settlement and privateness coverage.
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