Key Messages about the AMA recap to share with KOL.
TL;DR:
- Due to MEXC’s diverse range of assets, including mainstream and new on-chain assets, as well as many small token pairs, the nature of small token pairs makes them susceptible to manipulation by groups, which can lead to normal users being liquidated and their interests being harmed. As a result, we focus on closely monitoring and curbing group manipulation.
- 60% increase in coordinated malicious activities from January-February 2025 compared to November-December 2024. To address this, MEXC has a system of advanced risk control mechanisms and a set of proven measures.
- Strict handling of group manipulation: assets will be frozen for 365 days.
- Ordinary users are not affected. We are committed to protecting user interests and asset security.
- Normal market transactions will not trigger risk control. 99% of the exchange users will never be affected by this — law-abiding users will never need this information. Only numerous, repeated dishonest actions, specifically pump-and-dump schemes, wash trading, self-trading, front running, quote stuffing, spoofing, layering, or other types of market manipulation can trigger risk control.
- The false positive rate is low. If a wrongful judgment occurs, MEXC will assist the user in unfreezing their assets. Currently, the rate is below 0.1%.
- MEXC has established a dedicated team for handling such cases and also promises to optimize the communication process for users under restrictions.
On March 15, MEXC held an AMA with COO Tracy Jin in MEXC Vietnam X space.
Key Takeaways：
Risk control framework
Jaz: Great! Let’s begin with an overview of MEXC’s risk control framework. Tracy, could you explain why risk control is so important, especially in a platform like MEXC that supports a wide range of assets, including new and small-cap tokens?
Tracy: Absolutely, Jaz. MEXC is known for offering a diverse range of assets, from major cryptocurrencies to newly launched tokens. While this diversity is one of our strengths, it also makes us a target for malicious actors, such as coordinated groups that attempt to manipulate prices or exploit low-liquidity markets.
These activities not only harm the market’s integrity but also put ordinary users at risk, potentially causing unnecessary losses. That’s why we’ve built a robust risk control system to monitor, detect, and prevent such behaviors.
Malicious activities harming other users
Jaz: That makes sense. Recently, we’ve heard that the number of coordinated malicious activities has increased significantly. Can you share more about this trend and how MEXC is responding?
Tracy: Yes, unfortunately, we’ve seen a 60% increase in coordinated malicious activities from January-February 2025 compared to November-December 2024. These groups often use sophisticated methods to manipulate prices, trigger liquidations, or create artificial market movements.
To combat this, we’ve strengthened our risk control measures. For example, we now impose a 365-day fund freeze on accounts involved in such activities. This strict action sends a clear message that we will not tolerate behaviors that harm our users or the market.
Jaz: A 365-day account limit is indeed a strong measure. But how does MEXC ensure that ordinary users are not affected by these actions?
Tracy: This is a great question, Jaz. Our risk control system is designed to target only those who engage in malicious activities. Ordinary users who trade normally have nothing to worry about.
We use advanced algorithms and behavioral analysis to identify suspicious patterns, and our false-positive rate is extremely low—below 0.1%. However, if a user believes their account has been mistakenly flagged, they can reach out to our support team. We have a dedicated group to handle such cases and will promptly resolve any issues.
Meanwhile, we have different measures to ensure users’ asset security and protect trading security. We guarantee 100% security of user assets and provide proof of reserves to ensure transparency and trust.
MEXC’s Insurance Fund Account Provides $463M+ to Mitigate Traders’ Bankruptcy Losses.
Communication process with affected users
Jaz: That’s reassuring to hear. Speaking of support, we’ve received feedback from users about the communication process. How is MEXC addressing these concerns?
Tracy: We’re constantly working to improve our user experience, including the communication process. Recently, we’ve optimized our support system and established a dedicated team to handle user inquiries more efficiently.
However, we’ve also noticed that some users involved in malicious activities refuse to cooperate—they don’t provide their UIDs or relevant information when contacted. Instead, they spread FUD (Fear, Uncertainty, and Doubt) to create confusion. We urge the community to remain vigilant and trust in our commitment to fairness and transparency.
We have also established a specialized team to handle such cases and are committed to responding within 24 hours to provide detailed explanations and resolutions.
Risk Control reason and trigger
Jaz: Thank you, Tracy, for that comprehensive overview. Now, let’s open the floor to questions from our community. We’ve received a lot of great questions, so let’s dive in! Why is there risk control?
Tracy: Risk control is essential to provide users with a safer trading environment and protect the fairness of transactions for the majority of users. It’s not unique to MEXC—any reputable trading platform has risk control measures. At MEXC, we have good trading liquidity, low fees, and a wide range of assets, including meme coins. However, the nature of small-cap tokens makes them more susceptible to manipulation, which can harm normal users. That’s why we focus on monitoring and curbing such activities.
The platform detected abnormal pump-and-dump trading behavior. A risk control investigation confirmed that this was manipulative market activity, which may lead to the liquidation of other users and harm the interests of legitimate traders.
Jaz: What behaviors trigger risk control?
Tracy: 99% of our exchange users will never be affected by this — law-abiding users will never need this information. There is no situation where a user could accidentally violate the rules. This is important to understand.
Even if a user were to break a single rule, that alone would not be enough to impose restrictions on them. The issue here is numerous, repeated dishonest actions, specifically pump-and-dump schemes, wash trading, self-trading, front running, quote stuffing, spoofing, layering, or other types of market manipulation that can trigger risk control.
Normal market transactions will not trigger risk control. Our system is designed to target only abnormal trading behaviors that harm market order and user interests.
Jaz: What is the process after an account is flagged for risk control?
Tracy:
- Initial Review: If the activity is mistakenly flagged, restrictions are lifted immediately.
- Violation Confirmation: If violations are confirmed, we assess whether it involves an individual or a coordinated group. Group operations face stricter measures.
- Data Analysis: Our team analyzes transaction data to determine rollback points and freezing durations. In severe cases, the risk control period may extend up to 365 days.
- User Appeals: Users who believe their accounts were mistakenly flagged can contact our Customer Service team for verification.
Jaz: Why does MEXC roll back assets?
Tracy: Some users’ malicious actions have hurt others in the market. To protect law-abiding traders and restore fairness, we’re rolling back these activities to undo any unfair gains. If you’re a legitimate user affected by this, reach out to us with the necessary details—we’re here to help.
A rollback will only be carried out if the user has clearly violated the platform rules and affected the trading experience of normal users. We will determine the rollback time based on transaction data and records. This is a strict process.
Jaz: Why is the risk control period up to 365 days?
Tracy: The 365-day period is necessary to address complex and coordinated illicit activities that threaten market integrity. This extended period allows us to thoroughly investigate and mitigate sophisticated threats, ensuring a secure and transparent platform for all users.
Jaz: Why can’t users withdraw assets during risk control?
Tracy: During the audit process, certain functions, including withdrawals, are restricted to ensure a thorough investigation. Once the review is complete, legitimate users will regain full access to their accounts.
Conclusion:
MEXC strongly condemns any activities that undermine market fairness or harm the interests of our users. We maintain a robust risk control system to identify and address violations in accordance with established protocols. Any suggestion of arbitrary freezing of user assets is categorically false.
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