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Seychelles-based crypto trade MEXC has come beneath fireplace for allegedly locking customers out of their accounts and seizing their funds. These actions, which the trade claims have been motivated by irregular buying and selling actions, have sparked issues from the crypto neighborhood. Many customers have flocked to social media platform X in current days to accuse MEXC of locking them out of their accounts, seizing their funds, and failing to answer help requests.
Allegations Of MEXC Locking Customers Out Of Accounts
MEXC customers have just lately come ahead with some disturbing accusations in opposition to the trade. The accusations, which began on December sixteenth, coupled with the dearth of response from MEXC, have had crypto buyers questioning in regards to the shady actions of the trade.
In accordance with a publish on social media platform X by a dealer referred to as Vida, the shady exercise led to his account being locked out, his $92,000 buying and selling revenue frozen, and the order historical past worn out. To make issues worse, the trade’s help failed to supply a sound rationalization for the account seizure, solely claiming irregular buying and selling actions on the account. Vida backed up this declare with screenshots of his dialog with MEXC’s help, the place the trade acknowledged the account closure and the result of the investigation performed by their group.
As of at the moment, the market cap of cryptocurrencies stood at $1.631 trillion. Chart: TradingView.com
It might appear this development has been happening for some time, with numerous different customers complaining of them being locked out of their accounts. Vida additionally shared screenshots of the trade’s Telegram group which confirmed comparable complaints from different customers.
Mexc goes shameless mode as of late, many customers have complained on X that their funds are frozen & taken. I acquired worn out for 92k USDT too.
I made my revenue via a number of information trades, 5x’ed my bag on mexc futures in 15 days, after which my account was frozen.
I contacted… pic.twitter.com/urlpQ1e664
— Vida (@Vida_BWE) December 22, 2023
Potential Rationalization
Whereas explaining additional, Vida famous a attainable rationalization for the account closures. In accordance with the dealer, MEXC is concerned in shady actions which embrace forging its liquidity and market making. The trade usually bets in opposition to the consumer’s trades, enjoying the function of market makers themselves. Nonetheless, if a dealer makes an excessive amount of revenue, they grow to be an issue for the trade. Typically the revenue and the deficit the trade has to pay the dealer is so massive that it closes the account forthrightly.
The dealer additionally posted screenshots of the trade’s order e book, which seemed to be thicker than different different exchanges, together with Binance. Nonetheless, Vida claimed this was cast by the trade. He ended the thread by urging customers to exit the trade without delay as it’s at the moment on its strategy to ending up like FTX.
So as to add insult to damage, MEXC has didn’t make any feedback on the complaints on social media. In accordance with the trade’s phrases of service, it reserves the proper to taking measures in recovering any income obtained in violation of its consumer settlement and privateness coverage.
Featured picture from Shutterstock
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