MEXC Faces 200% Fraud Activity Surge in Q1 2025

MEXC Exchange, a major global cryptocurrency platform, reported a 200% increase in fraudulent activity in Q1 2025. Spurred by social engineering scams, the incidents doubled from the previous quarter, primarily impacting new users.

Tracy Jin, MEXC’s Chief Operating Officer, stated, “The fraud was primarily caused by social engineering scams targeting new, uneducated users.” The primary targets were uneducated users in growing markets, including India and Indonesia.

The rise in fraudulent activities caused significant strain on the affected new users, primarily in Asia. It underscores the growing need for enhanced user education and preventative measures on cryptocurrency platforms.

MEXC has not disclosed specific financial losses. There has been no official impact reported on major trading assets such as BTC, ETH, or popular altcoins, although liquidity concerns exist among stakeholders.

Despite the increase in fraud attempts, no significant changes in Total Value Locked (TVL) or liquidity outflows were disclosed. The exchange emphasized the importance of educating its user base to mitigate future incidents.

Crypto markets often face fraud amid rising volatility and new user influxes. Historical trends suggest these social engineering tactics remain prevalent. Market observers suggest increased regulatory interest may follow such substantial fraud spikes.