MEXC Addresses Rumors About Financial Health
Cryptocurrency exchange MEXC has denied rumors questioning its financial stability. The exchange confirmed all user funds are safe and fully backed. These statements respond to claims on X (formerly Twitter) alleging MEXC was cash-strapped and blocking withdrawals.
In an official announcement, MEXC shared its Proof of Reserves (PoR) data. It shows major assets are backed at over 100%, confirming strong financial health. Users can verify this through updated Merkle Tree data, which will refresh later tonight.
MEXC said its PoR details are publicly available on CoinMarketCap, CoinGecko, and DefiLlama. The company also noted its $100 million Guardian Fund protects user assets. Public wallet addresses linked to the fund remain open for verification.
Withdrawal Surge and Transparency Efforts
MEXC issued its statement amid record withdrawals from the platform, as reported by Whale Insider. Despite the increased outflows, the exchange assured operations continue normally. “All user assets are fully backed, and our Proof of Reserves data confirms major assets exceed 100% coverage,” it wrote on X.
Bitcoin’s price rose sharply from under $4,000 in 2019 to nearly $110,000 by late 2025. Withdrawal spikes on MEXC increased from mid-2024, suggesting investors moved funds to private wallets for long-term holding amid rising uncertainty.
Such withdrawal patterns often indicate growing caution or distrust in an exchange. MEXC’s transparency aims to restore user confidence during this critical period for the crypto industry.
Controversies and Exchange Response
Online allegations triggered further controversies for MEXC. A pseudonymous user, Mystral_777, posted a detailed thread accusing MEXC of freezing $10 million in withdrawals and charging excessive listing fees. The thread included screenshots and messages but lacks independent verification from regulators or law enforcement.
The accusations involved projects like CateCoin being charged up to $60,000 for listings, with additional fees demanded later. Tokens of projects refusing to pay were reportedly not listed, according to the thread.
MEXC also froze $3 million belonging to the trader known as White Whale, citing possible “suspicious activities.” The trader publicly criticized the block. In response, MEXC’s Chief Strategy Officer, Cecilia Hsueh, apologized on X for internal errors, stating, “We fucked up.”
Hsueh acknowledged systemic issues in communication and management. She explained that since joining two months ago, she has pushed for improvements as the exchange grew rapidly. Leadership now plans reforms in risk management and customer service. MEXC will introduce a “fast-track channel” to help users resolve frozen asset issues swiftly.
