March , 2025 – Victoria, Seychelles — Cryptocurrency exchange MEXC has detected and liquidated a large-scale coordinated group of market manipulators. During an internal investigation, the exchange discovered two coordinated groups of traders — one operating in Vietnam (44 users and 168 accounts), the other in the CIS countries (138 users, over 1,500 accounts) — engaging in abusive trading practices, including self-trading, spoofing, layering, front-running, quote stuffing, spoofing, layering, and other types of market manipulative behaviors. The group’s activities were stopped, and their accounts were frozen.
Of notable concern is the presence of large groups and institutional-level actors in these manipulations. According to MEXC data, coordinated malicious trading activities have increased by 60% from January to February 2025 compared to the end of 2024, highlighting the growing sophistication of such schemes. The trend introduces a new layer of risk, as such entities utilize institutional-level access to liquidity, infrastructure, and algorithmic strategies to execute serial schemes at scale.
“We are recording the transformation of manipulations from the retail to the group and even quasi-institutional level, which carries systemic risks for both individual exchanges and the market infrastructure as a whole,” the MEXC analytical department notes.
MEXC’s forensic analysis identified the following fraudulent trading tactics:
- Self-Trading: Accounts acting as both buyer and seller to create artificial trading volume.
- Spoofing: Placing and canceling large orders to mislead traders about market demand.
- Layering: Repeatedly placing and canceling large orders to manipulate price perception.
- Disruptive Algorithmic Trading: The use of programmatic trading methods that threatened system stability.
- Market Manipulation: Coordinated efforts to artificially influence asset prices or trading volumes through deceptive practices, including price inflation, suppression, and misleading order book activity, ultimately distorting fair market conditions.
According to the platform, some of the accounts involved showed daily trading volumes of over $20 million, and the participants’ algorithms created short-term distortions on individual pairs with an increase in volatility of up to 120%. Such actions, if not promptly identified, could lead to mass liquidations and distortion of the asset’s market price within minutes.
To mitigate the impact of the violations and protect market integrity, MEXC applied a targeted rollback of suspicious transactions and suspended all identified accounts involved in the scheme. A detailed investigation into the scale of the manipulations and an assessment of the possible threat to other trading platforms is currently underway. The exchange also plans to share its findings and analytical materials with relevant authorities and regulators through international channels.
With the increasingly stringent requirements for trade transparency under different global regulatory initiatives, MEXC emphasizes the need to create international standards to prevent manipulation and coordination between crypto exchanges. The exchange already cooperates with analytical providers and utilizes advanced automated instruments to track suspicious activity, including attempts at cross-border front-running.
“We see this case as an indicator of the next wave of threats to digital markets — organized, large-scale, technically equipped groups capable of coordinating actions on dozens of tokens and hundreds of accounts. Without proper synchronization between platforms and regulators, the industry will face a new round of market instability,” said Tracy Jin, COO of MEXC.
One of the key preventive measures is the introduction of a special monitoring mechanism for suspicious accounts. All participants involved in potentially manipulative schemes are placed under enhanced surveillance for at least 30 days. During this period, their activity is analyzed for signs of malicious intent or collusion. If suspicious behavior is repeated systematically, the account is blocked and transferred to the internal investigation department. This allows for timely neutralization of risks and the exclusion of unscrupulous participants before they cause damage to the market.
In addition to preventive measures, MEXC emphasized that all user funds are protected, and the Proof of Reserves system and the platform’s insurance fund allow to cover risks in case of abnormal liquidations. MEXC’s Insurance Fund Account has provided over $463 million to mitigate traders’ bankruptcy losses. Additionally, MEXC collaborates with other crypto exchanges to share best practices and develop enhanced security measures to create a safer trading environment.
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