Many cryptocurrency users and industry observers are warning about the global exchange MEXC regarding account freezing and withdrawal restrictions.
The Coinbase exchange previously followed a similar path before the platform's CEO committed to reducing account freezing by 82%.
MEXC Faces Trust Crisis as Withdrawal Restrictions Raise Concerns
The MEXC exchange is facing allegations, from arbitrary account freezing to potential insolvency. User concerns suggest a trust crisis may be forming around the platform, with some warning of signs similar to Ponzi behavior.
"In recent months, the MEXC cryptocurrency exchange has been increasingly monitored due to the rise in account freezing and withdrawal restrictions, often without clear or reasonable explanation," DeFi Master wrote on X (Twitter).
He cited multiple high-net-worth users with balances in the seven to eight-digit range being targeted. MEXC is reportedly primarily automating support responses, while senior management remains "unresponsive" and "unwilling to remedy these abuses."
This post adds to a list of confirmations from other users claiming similar experiences—some alleging they lost money after making profitable trades.
Meanwhile, others reported receiving vague warnings about "unusual activity" before their accounts were frozen.
More specifically, one user described a personal experience where his account was flagged and locked after attempting to withdraw funds.
"Everything seemed fine... then I tried to withdraw. Nothing. 'Processing.' Now it's been days. Support? Silent. Automated response, no solution," the user wrote.
After investigating, the user reported discovering "hundreds of similar stories." MEXC did not immediately respond to BeInCrypto's request for comment.
Vague Reasons Could Have Serious Consequences for MEXC
MEXC has not issued any official public statement to address recent allegations. However, the platform previously stated it was suppressing manipulative behaviors.
On March 25th, MEXC reported freezing over 1,500 accounts related to organized market manipulation groups.
According to the exchange, the affected accounts were involved in fraudulent activities, self-trading, and algorithmic strategies with daily revenues exceeding $20 million.
"We are observing a shift in manipulation behaviors from retail investor levels to group and even semi-institutional levels, which brings systemic risks to individual exchanges and market infrastructure in general," read a passage from the press release.
However, critics argue that vague reasons about "unusual activity" are a common excuse to delay or deny withdrawals even in legitimate cases.
Meanwhile, complaints are increasing as user sensitivity to account freezing remains high.
BeInCrypto recently reported that Coinbase had reduced account freezing incidents by 82% after public pressure and internal restructuring.
Coinbase CEO Brian Armstrong acknowledged the problem had existed "longer than acceptable" but said the exchange prioritized resolving it, with improvements ongoing.
This response is entirely contrary to MEXC's approach, raising speculation that MEXC's issues extend beyond customer service.
"The speed and nature of MEXC's account freezing resemble warning signs typically associated with pyramid or Ponzi schemes... They seem to be digging their own grave," Master added.
According to users, MEXC is restricting outgoing cash flows while prioritizing new incoming funds.
Notably, this is an evolving story, with more updates expected as MEXC provides an official explanation regarding concerns about the platform's solvency and operational integrity.
