MEXC Responds to Whistleblower Claims, Denies Manipulation Allegations

MEXC addresses whistleblower claims, saying liquidations followed market volatility while some account freezes stemmed from legal orders.

Crypto exchange MEXC has responded to whistleblower allegations circulating on social media, which we reported in our earlier coverage. 

The response follows trader claims of manipulated charts, forced liquidations, and frozen accounts. Users alleged losses exceeding $8 million, according to multiple posts shared on X. MEXC says the claims misrepresent how its systems and compliance processes operate.

In comments to the LBN team, the exchange addressed and debunked cases highlighted by X user Sofia (@alotaibi6613).

Her posts referenced several traders, including Bogdan (@st88887) and @cryptokijun. MEXC stated these incidents resulted from market volatility, not platform misconduct.

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MEXC Says Liquidations Followed Market Volatility Rules

MEXC explained to the LBN team that the cited liquidation cases stemmed from extreme market volatility. 

According to the exchange, its liquidation mechanism applies transparent and uniform rules. The platform said no account manipulation or system malfunction occurred.

MEXC added that its compensation policy applies only to verified platform failures. 

Losses caused by market-driven liquidations do not qualify under that framework. The exchange said it communicated this position to the affected users multiple times.

The response also addressed comparisons with other major exchanges. MEXC said claims of universal compensation across the industry are misleading. 

According to the exchange, platforms compensate only qualified malfunction-related cases.

Related Reading: Whistleblowers Say MEXC Manipulated Charts and Froze Accounts, Leadership Silent

Exchange Pushes Back on Compensation Comparisons

MEXC stated that industry practice does not cover all liquidation events. 

Other exchanges apply similar standards when reviewing compensation requests. The platform said that portraying this as a refusal to compensate is inaccurate.

The exchange emphasized that liquidation during volatile conditions is not unique. It added that global market events often trigger sharp price movements. Such conditions, MEXC said, affect all leveraged traders across platforms.

Social media discussions intensified after an October flash crash. That event caused widespread liquidations across crypto markets. 

MEXC maintains that its systems functioned as designed during that period.

Account Restriction Tied to Legal Compliance, MEXC Says

MEXC also addressed the case involving @AkimiIchikawa.

The user had claimed that the exchange had frozen his account with about $4 million for over an year. In their response, the exchange said the account restriction followed a legal request. It denied claims of discretionary or arbitrary action.

According to MEXC, relevant local authorities issued the request. As a global exchange, MEXC said it must comply with jurisdictional laws. The platform described such actions as mandatory and non-negotiable.

The exchange confirmed that it formally notified the user of the legal basis. It added that compliance obligations apply across all regions.

The response comes as social media discussions around the allegations continue.

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