MEXC Strengthens Risk Controls, Freezes KOL Account in Anti-Fraud Push
MEXC risk controls have been enhanced as the exchange intensifies efforts to combat fraud syndicates, bot-driven trading and suspicious capital flows. In July and August, the crypto exchange restricted over 17,000 accounts linked to 3,000 fraud rings, achieving a 62% drop in fraudulent activity using AI-powered fraud detection. These MEXC risk controls include stricter compliance checks and advanced KYC requirements that have led to ongoing suspensions of accounts failing to meet standards. The measures sparked a dispute with TheWhiteWhale, a KOL whose account was frozen amid alleged compliance risks. MEXC’s actions mirror similar measures at platforms like OKX. The exchange also identified and blocked 2,008 bot accounts in its futures markets—a 24% rise over the previous period—to protect retail traders.
Neutral
MEXC’s enhanced risk controls are likely to have a neutral impact on the wider crypto market. In the short term, freezing high-profile accounts and tightening KYC may reduce trading volume and trigger isolated sell-offs, as seen in past compliance crackdowns at exchanges like OKX. However, the 62% drop in fraud activity and the blocking of 2,008 bot accounts could strengthen trader confidence over the long term by enhancing platform integrity. While some traders may react negatively to stricter rules, institutional investors often favor exchanges with robust compliance frameworks. Overall, the balance between temporary liquidity pressures and improved market trust suggests a neutral outlook.