Global exchange MEXC said it intercepted over $2.2 million in stolen crypto in the past two months, as part of a broader security overhaul that also includes a $100 million Guardian Fund and real-time proof-of-reserves disclosures.
The data comes from the platform’s bimonthly report, published this week, which outlines how MEXC is responding to rising demands for security, solvency and fraud response — concerns that have grown louder following a wave of sophisticated hacks, ransomware settlements, and phishing rings hitting the industry in Q2.
According to the report, MEXC processed 709 fraud-related assistance requests, including 124 official freeze orders from law enforcement. In total, 41 cases led to successfully blocked or recovered funds. The exchange also said it reimbursed over $559 million to users through its Futures Insurance Fund — a payout sum significantly higher than any publicized by major competitors this year.
Growing Regulatory Expectations, Real-Time Proofs
MEXC’s report emphasizes over-collateralized reserves as part of its solvency model, publishing current wallet holdings (including 4,083 BTC, 69,234 ETH, 2.32B USDT) that exceed user deposits. The proof-of-reserves model aligns with proposed frameworks under EU MiCA Phase II and South Korea’s pending real-time reserve audit bill.
The exchange has also begun publicly sharing wallet addresses for its Guardian Fund — an emergency pool meant to compensate users in extreme cases such as smart contract bugs or system-wide vulnerabilities.
Such proactive disclosures are increasingly viewed as a competitive necessity, not a marketing tool. Analysts say exchanges that fail to demonstrate solvency or fraud protection may face declining institutional access and insurance coverage in 2025–2026.
Surge in User Mistakes, Phishing Attacks
Beyond crime rings, MEXC also reported 2,428 user error cases — such as mistaken transfers or incorrect tags — successfully resolved by its support team, recovering 1.1 million USDT. The data suggests rising pressure on centralized platforms to act as final backstops for users navigating an increasingly complex web of wallets and L2 bridges.
The report comes just weeks after the $11 million LayerZero exploit and amid growing concerns over deepfake-powered KYC fraud, particularly in high-volume regions like Southeast Asia and Eastern Europe. MEXC said it flagged over 46,000 suspicious accounts tied to fraud syndicates across the CIS, India, and Indonesia
Source:: MEXC Intercepts $2.2M in Illicit Funds, Bolsters User Protection Amid Rising Crypto Crime