MEXC Under Fire Again: Fresh Premarket Scam Allegations Surface

Another day, another exchange in the hot seat. MEXC, the global crypto trading platform, is facing renewed scrutiny over allegations of premarket manipulation—a story that's becoming as familiar as a bear market.

The Anatomy of a 'Premarket' Play

For the uninitiated, the premarket phase refers to the period before a token officially lists on major exchanges. It's a shadowy arena where select traders get early access, often at preferential prices. The allegations suggest this access isn't always earned—sometimes it's allegedly gamed, creating an uneven playing field before the starting gun even fires. It turns the ideal of decentralized finance on its head, favoring a few insiders while the retail crowd scrambles for scraps.

Why This Keeps Happening

Let's be real—the line between aggressive market-making and outright manipulation in crypto's wild west can be blurry. The incentives are massive: front-running a listing can mean instant, astronomical gains. For exchanges, hosting the next moonshot token drives volume and fees. The system, in its current form, practically invites these allegations. It's the financial equivalent of leaving a vault open and being surprised when money goes missing.

A Pattern, Not an Anomaly

This isn't MEXC's first rodeo with such claims. The repetition points to a structural issue, not a one-off mistake. Each cycle of allegation, denial, and quiet resolution erodes trust—the very commodity the entire crypto economy is built upon. When users feel the game is rigged, they eventually stop playing, or worse, they call in the regulators with their rulebooks and subpoenas.

The Real Cost

The damage here isn't just reputational. It undermines the core promise of cryptocurrency: a more transparent and equitable financial system. Every alleged premarket scam is a gift to the legacy finance critics who love to say, 'See? It's just the same old wolves in digital sheep's clothing.' They're not entirely wrong—sometimes the most innovative thing in crypto seems to be the new ways to recreate old-school pump-and-dumps.

So, here we are again. Until transparency becomes more than a marketing buzzword and real, verifiable safeguards are the norm, expect this script to keep playing on a loop. The market might be decentralized, but accountability shouldn't be.

Detailed cases highlight platform risks

In a related response to Gautamgg’s findings, WebTigerX affirmed his observations that MEXC is “Openly cheating users and breaking their Terms & Conditions.” In these instances, there seems to be an issue with premarket risks regarding collateral compensation and settlements. 

🚨 MEXC Pre-Market Scam Exposed🚨

I have received shocking proofs from @Gautamguptagg regarding @MEXC_Official Pre-Market trading. They are openly cheating users and violating their own Terms & Conditions.

Here is the full breakdown of 2 Major Cases happening right now. 👇

🔥… https://t.co/C9nH2pZazi pic.twitter.com/JzRz9iaMDj

The first case is contradictory to the MEXC Rule No. 10, which is known as the Collateral Compensation Scam. This rule states that all users should be refunded the collateral in the event of a seller’s default. However, the users were allegedly taken advantage of, and the funds were pocketed by the platform. 

The second case is that of the Settlement Failure, where the USDT funds were held for more than 10 days in the system. WebTigerX stated that the above-mentioned events seem to be neither technical issues nor mistakes.

MEXC once again facing rage

In late October 2025, MEXC faced intense scrutiny following public accusations from trader The WhiteWhale, who claimed the platform had frozen over $3 million in his funds without clear justification, alleging it stemmed from his profitable trading activity. 

The controversy escalated as on-chain investigator ZachXBT began reviewing similar user complaints, and community figures amplified calls for transparency. The matter prompted a rare public apology from MEXC’s Chief Strategy Officer Cecilia Hsueh on October 31, who admitted communication failures and confirmed the release of the funds. 

This incident triggered a sharp spike in user withdrawals from the exchange, with CryptoQuant data showing Bitcoin outbound transactions surging dramatically amid broader rumors of withheld assets and potential insolvency. However, MEXC firmly denied the claims and reaffirmed full backing of user assets via Proof of Reserves exceeding 100% and pledging operational reforms. 

MEXC reacts to increasing crypto scams

Despite this, MEXC has a strong financial base. On November 3, MEXC posted an updated Proof of Reserves, which indicated that their reserves were over their users’ deposits. The Proof of Reserves (PoR) included their reserves of USDT, USDC, Bitcoin, and Ethereum, which stood over 100%. The platform has also debunked claims of freezing $40 million in withdrawals and promoting unusually high 600% staking rewards for deposits of USDT.

Furthermore, MEXC gives the ability to check the reserves through the Merkle Tree system in cooperation with third-party mirrors on CoinMarketCap, CoinGecko, and DefiLlama. The period between April and June 2025 saw the platform prevent over 70,000 fraud attempts related to 8,500 gangs, lowering the fraud percentage by 12%.

Despite this, there has been a rise in cryptocurrency scams. According to TRM Labs, there was a 456% increase in AI scams from May 2024 through April 2025, with $2.47 billion lost between the first half of 2025.

High-profile losses highlight user vulnerability

The danger isn’t just on exchanges. Recently, one user lost $50 million in USDT from a simple copy-paste mistake. A scammer tricked them by creating a fake wallet that looked almost identical. This shows how even small errors in crypto can lead to huge losses, so caution is essential.

MEXC is facing growing trust concerns as users report problems with premarket trades. Even though the platform says it has enough funds to cover user deposits, traders should stay careful. With scams becoming more advanced and potential issues on the platform, it’s crucial to protect your money and double-check every transaction.

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