cryptofraud

Executive Summary:
1000% Withdrawal Surge: MEXC is experiencing a staggering 10-fold increase in Bitcoin withdrawal rates, indicating a massive and ongoing loss of user trust.Anonymous Entity = Zero Protection: The platform hides its owners, physical address, and the exact legal entity in its User Agreement, leaving users with absolutely no legal protection or avenue for compensation.Documented Price Manipulation on MEXC with Deliberate Disregard despite Repeated Reports: Documented evidence shows MEXC ignoring its own ±3% index deviation rule to artificially spike prices (13%) and freeze funding rates, systematically liquidating traders.Predatory B-Book Model: Trading experts highlight that MEXC acts as an undisclosed broker trading against its users, frequently confiscating legitimate earnings under the guise of "abnormal profits."Likely Data Manipulation: Independent research by K33 revealed an absurd 457% Open Interest to Proof of Reserves ratio, likely pointing towards fabricated trading volume and data manipulation.Unlicensed & Globally Warned Against: Unlike major centralized exchanges, MEXC operates without a Crypto Operation License. 18 regulatory bodies worldwide have issued official warnings against them.Red-Flagged for Potential Fraud: Highlighted by ScamAdviser stating "mexc.com may be a scam", red flagged as "actively predatory" by FinTelegram (independent financial intelligence platform investigating financial crimes), and proven incident of a forged license in its favor.Abysmal Reputation (1.6/5): 81% of Trustpilot reviewers rate it 1/5, reporting frozen funds, massive losses, and an endless loop of copy-paste support responses meant to evade accountability.
After long time of using the MEXC platform and diving deep into researching it, I am sharing my experience and findings with you here:
1. Surging Withdrawal Rates MEXC has been facing a staggering 10-fold (1000%) increase in Bitcoin withdrawal rates since last July, and this trend continues today. You can verify this via the following link: https://cryptoquant.com/asset/btc/chart/exchange-flows/exchange-withdrawing-transactions?exchange=mexc&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=line

2. MEXC is Completely Unlicensed and Officially Warned Against
Unlike MEXC, most major centralized crypto exchanges hold at least one Crypto Operation License to provide virtual asset services. (Do not confuse this with merely registering as a Money Services Business [MSB], which is strictly for anti-money laundering (AML) and counter-terrorism purposes and has nothing to do with user protection or trading oversight). Without the aforementioned Crypto Operation License, user compensation, protection, and platform oversight are nonexistent, leaving you highly vulnerable to exploitation, fraud, and manipulation. This includes manipulating the Index Price and funding rates on MEXC, as will be explained below.18 regulatory bodies worldwide have issued warnings against MEXC: FCA (UK), BaFin (Germany), FMA (Austria), NCA and FSA (Japan), ASIC (Australia), AMF(France), SFC (Hong Kong), CNMV (Spain), SC (Malaysia), OSC, AMF, BCSC (Canada), HCMC (Greece), FSMA (Belgium), FSA (Seychelles), VARA (Dubai), and CySEC (Cyprus). You can visit the official websites of these regulators and type "MEXC" in the search bar to verify. Having a financial entity on official warning lists is materially different from simply being unlicensed. A bank might process transactions for an unlicensed entity subject to enhanced due diligence, additional documentation, and keeping it under surveillance. However, being on official warning lists means no reputable bank can deal with them – particularly regarding international transactions. If things escalate, an international order could be issued to shut down the platform, resulting in the freezing of your MEXC account! Despite the numerous regulatory warnings, MEXC continues to evade regulatory oversight, likely in order to persist in manipulating and unjustly enriching itself by seizing traders' funds, as detailed below.
3. Who owns it? Nobody knows The website hides the details of its owners, team structure, physical address, and compliance contact persons. Even the domain registry is masked—these are all classic red flags for any financial platform.
4. ScamAdviser States "mexc.com may be a scam" ScamAdviser, a site dedicated to detecting fraudulent websites, lists MEXC as a suspected scam. It has also been red-flagged by FinTelegram (an independent financial intelligence platform investigating financial crimes). FinTelegram also states: “ …MEXC’s scam-level ratings and its reliance on Finetix Ltd Limited, Paytend and HEURO to bypass AML filters. This case proves that MEXC is no longer just “unregulated”—it is actively predatory”. Links: https://www.scamadviser.com/check-website/www.mexc.com https://fintelegram.com/mexc-compliance-update-red-flag-warning/ https://fintelegram.com/tag/mexc/ 
5. Documented Index Price Manipulation on MEXC Platform (Violating their own stated rules) with Deliberate Disregard despite Repeated Reports MEXC’s policy literally states the following:
"The Index Price is the volume-weighted average price of the underlying asset across major spot exchanges.""MEXC will periodically update the index components and weights.""If the spot price of a particular exchange deviates from the median of all exchanges by ±3% [currently updated to ±1%], it will be excluded." 
Here is the link documenting the above quotes on their official website: https://www.mexc.com/learn/article/3-key-prices-in-futures-trading-what-are-index-price-fair-price-and-last-price-/1  
👉 For TRADOORUSDT (and other perp pairs), the index was 100 % MEXC’s own spot price for two weeks. All 11 other spot exchanges—including major exchange: Bitget—are ignored. Result: At 09:53 UTC on 09-09-2025, MEXC’s price (spot: 2.8921 ≡ index: 2.8921 ≈ fair price: 2.8812) artificially spiked 13 % above the real market median (2.5404) and liquidated my account. (Values used for the median: Bitget 2.5531, KCEX 2.5411, Biconomy 2.6150, Hotcoin 2.5211, Ourbit 2.5599, XT 2.5188, BitMart 2.6952, HIBT 2.5165, Poloniex 2.5398, BingX 2.4496).
This is not an isolated case. There are over 100 reports of the same issue on Trustpilot alone, not to mention hundreds of reports of other breaches!
6. Funding-Rate Fee Frozen at -0.50% (In certain perpetual contracts) For TRADOORUSDT, the funding rate is supposed to be adjusted every 4 or 8 hours. Instead, it remained frozen for two weeks, heavily draining short positions even when there was no gap between the perpetual futures price and the spot price (in other words: even when the price premium had completely vanished).
7. Abysmal User Rating: 1.6/5 (81% of reviewers rate it 1/5) On review platforms with strict anti-fake review policies (like Trustpilot), MEXC scored an abysmal 1.6 out of 5. (Update: The overall rating has been replaced with a warning from Trustpilot for MEXC violating the platform’s terms of service by encouraging reviewers to post fake positive reviews! However, the page still shows that 81% of reviewers gave a rating of 1 out of 5.).
Withdrawal issues, uncredited deposits, and account freezes: 50-60% of reviews.Liquidations due to index price manipulation and/or frozen funding rates: 10%.Useless customer support evading investigations into irregularities: 15-20%.Accusations of fraud, theft, or transferring stolen funds to the platform (along with non-cooperation with law enforcement): 15%.Positive reviews: Less than 5%.
Trustpilot review page link: https://www.trustpilot.com/review/www.mexc.com

8. Useless, Copy-Paste Support Loop Every support ticket in my case received a generic response. There is zero explanation as to why the ±3% rule was ignored or where the "periodic updates" went. There are no internal compliance case numbers, no timelines provided, and absolutely no refunds.

9. MEXC.com User Agreement Hides the Legal Entity = Users are Unprotected The platform's Terms and Conditions fail to identify the legal entity with which users are entering into the agreement. (A legal entity is different from a platform's famous brand name; it should be formulated with the business name followed by an abbreviation indicating the company type and liability limits, such as "Binance Bahrain B.S.C.", along with its governing jurisdiction). Instead, MEXC’s User Agreement vaguely states that the agreement is "entered into by and between you... and MEXC Trading Platform" without naming a registered corporate entity or jurisdiction. This means there is no legal avenue for protection, accountability, or compensation if any violation occurs. Check the User Agreement for yourself here: https://www.mexc.com/terms 

10. Independent Research Firm Concludes MEXC Manipulated Trading Data A research report published by K33 Research in February 2023 highlighted a shocking statistic: the ratio of Open Interest to Proof of Reserves on MEXC stands at an absurd 457%, a highly anomalous figure compared to competitors whose ratios rarely exceed 100%. Simply put, this means the volume of open positions on the platform is 4.5 times larger than the assets they have actually proven to hold. The report concludes this can only happen under two scenarios: "(A) Traders on MEXC use significantly higher leverage than on any other platform, or (B) The figures are completely manipulated." The report leans toward option (B) (manipulation), noting a distinct lack of excessive liquidations on MEXC during highly volatile market conditions, which would inevitably occur if extreme leverage were genuinely being used. The research reached the same conclusion when analyzing MEXC’s reported trading volume against its reserves. This data-backed analysis adds a layer of severe doubt regarding the integrity of the numbers the platform reports.
11. Forged License In May 2024, the Financial Services Authority in Seychelles (FSA Seychelles) issued a warning regarding a website that fraudulently cloned the authority’s site to display a forged license for a company named "MEXC Global trading Limited." Official warning link: https://fsaseychelles.sc/media-corner/regulatory-updates/alert-cloning-of-the-fsa-website-and-forgery-of-securities-dealer-licence

12. Trading Expert (15 years): MEXC confiscates trader profits under the guise of "Abnormal Profits", and that the pure crimes going on at MEXC  are worse than those at FTX (which collapsed). In a tweets by trading expert MDX (a professional with 15 years of experience), he stated that MEXC does not function as a true crypto exchange, but rather as an undisclosed broker (B-book model). Because they list a massive amount of unknown, highly illiquid altcoins, they provide 99% of the liquidity themselves through their own affiliated liquidity providers. Therefore, when a trader wins, they win at MEXC's expense (as MEXC takes the opposite side of the trade). Once a trader makes a profit, the platform simply confiscates those earnings, labeling them "abnormal profits"! Expert's tweet links: https://x.com/MDXcrypto/status/1738527879003058235
https://x.com/MDXreal/status/1743984437098959280 
#MEXC #Cryptoscam #ScamAlert #CryptoFraud #CryptoSafety

Shanghai Police Bust Cryptocurrency Scam Gang
Shanghai police successfully dismantled an organized group of fraudsters who scammed victims through fake investment platforms targeting cryptocurrency traders. Investigators in the Yangpu District arrested 16 individuals involved in the fraudulent scheme following an extensive investigation.
Fraudsters Used Fake Identities and Manipulation
The investigation revealed that the gang, led by individuals identified as Yang and Yu, infiltrated cryptocurrency investment chat groups while posing as “investment masters.” Using this tactic, they gained the trust of victims and directed them to a fake platform for cryptocurrency contract trading, which they had created.
On this platform, the fraudsters exploited victims’ desire for quick profits. Victims were persuaded to execute multiple trades, incurring high fees in the process. Manipulative tactics included convincing victims to increase their investments using a fraudulent “profit and loss ratio” mechanism. This trick led victims to believe their financial losses were due to poor market decisions rather than the fraudulent platform, allowing the gang to extract even more funds.
Arrests and Suspects’ Confessions
Following their arrest, all suspects admitted to their crimes. The Yangpu District police have placed the 16 individuals under compulsory criminal measures on suspicion of fraud. The case is currently under further investigation, according to authorities.
Conclusion
This case highlights the growing risks associated with cryptocurrency investments and fraudulent platforms. Police urge the public to exercise caution when engaging with unverified investment schemes and platforms.

#CryptoFraud , #CryptoNewss , #bitcoin , #ChinaCrypto , #Cryptoscam

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

He thought no one would notice — but they did. Waylon Wilcox (45) from Pennsylvania made millions selling CryptoPunks NFTs during the digital collectibles boom, yet claimed in his tax returns that he never sold any digital assets. Now, he’s facing up to six years behind bars.

💸 Over $13 Million Hidden — $3 Million in Taxes Dodged
According to the U.S. Attorney’s Office, Wilcox has admitted to failing to report over $13 million in NFT-related income from 97 transactions in 2021 and 2022.
This allowed him to avoid paying more than $3.2 million in taxes.

Shockingly, he ticked “No” when asked on both of his tax returns whether he had disposed of any digital assets. In reality, he sold 62 CryptoPunks for $7.4 million in 2021, and 35 more in 2022 for nearly $4.9 million.

🧠 CryptoPunks: From Hype to Decline
CryptoPunks were once among the most sought-after NFT collections. In August 2021, the floor price reached a staggering 125 ETH (nearly $479,000) per piece.
Today? According to CoinGecko, the current floor price is about 42.5 ETH (roughly $69,000) — an 85% drop from its all-time high. Despite that, some still fetch millions. Just last week, one holder sold a CryptoPunk for $6 million, taking a $10 million loss.

⚖️ IRS: No One Is Above the Rules
“Virtual currencies and NFTs are not beyond the reach of the law,” warned Yury Kruty, Acting Special Agent in Charge of IRS Criminal Investigation in Philadelphia.

The IRS is increasingly targeting complex schemes involving crypto and NFTs that aim to conceal taxable income.
“Now more than ever, Americans need to know that everyone has to play by the rules and pay what they owe,” he added.

🛑 What Does the Law Say?
The U.S. Attorney’s Office reminded the public that any NFT sale must be reported on tax returns. Whether it's a gain or a loss — income from digital assets is fully taxable.

🚨 What Does Wilcox Face?
For filing false tax returns, Wilcox could face:
🔹 up to 6 years in prison

🔹 supervised release after sentencing

🔹 and a hefty fine under federal law

#nft , #CryptoFraud , #CryptoNewss , #Cryptolaw , #DigitalAssets
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A shocking case of abuse of power within the UK’s National Crime Agency (NCA) has resulted in a prison sentence: former investigator Paul Chowles has been sentenced to 5.5 years for stealing 50 bitcoins, worth around £59,000 at the time, and now valued at over £4.4 million.

Stole Directly from Evidence
Chowles, now 42, was part of an elite NCA team investigating Silk Road 2.0 in 2014 — a darknet marketplace that emerged after the FBI shut down the original Silk Road. His job was to analyze digital data seized from the market’s administrator, Thomas White. During this process, Chowles gained access to private keys for a wallet containing 97 BTC. In May 2017, he quietly transferred 50 of them to his own “retirement wallet.”
The theft remained unnoticed for years, with initial suspicion falling on White himself due to his technical expertise. It wasn’t until 2022, when White was released from prison, that he raised the alarm, suggesting that only NCA officials could have accessed the funds. This triggered a new investigation.

The Blockchain Never Forgets
Police enlisted the help of blockchain analytics firm Chainalysis. Using their Reactor tool, investigators traced the flow of stolen BTC — despite efforts to launder it through the anonymizing service Bitcoin Fog. The analysis linked several crypto wallets directly to Chowles. The investigation gained further traction when authorities found a device at his home containing matching private keys.
One wallet holding about 30 BTC had been dormant for nearly five years, reinforcing suspicions that it was meant to store the stolen crypto long-term.

Confession and Verdict
In May 2025, Chowles pled guilty to theft, money laundering, and concealing criminal property. He was dismissed from the NCA shortly before sentencing. A judge sentenced him to 5.5 years in prison.

#Cryptoscam , #CryptoCrime , #bitcoin , #CryptoFraud , #CryptoNews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A chilling case is unfolding in New Zealand, where cryptocurrencies play a central role. Julia DeLuney, a former teacher and crypto investor, stands accused of murdering her 79-year-old mother, Helen Gregory. Prosecutors claim the motive behind the crime wasn’t just personal turmoil but a dark spiral of debt and crypto fraud.

Fall from the Attic – or Cold-Blooded Murder?
The incident took place on January 24, 2024, in the quiet suburb of Khandallah. DeLuney claimed her mother had fallen from the attic stairs. However, forensic experts concluded that the head injuries did not match a simple fall – they were consistent with multiple blunt force traumas. Prosecutors argue it was a meticulously planned murder designed to cover up ongoing financial scams.

Cryptocurrencies as the Trigger
Investigators uncovered that between January 2023 and January 2024, DeLuney had transferred over $90,000 to crypto platforms. Her expenses, however, far exceeded her income. Just two days before the murder, she emailed her mother, claiming that a crypto investment made on her behalf had generated over $160,000 in profit. She requested $18,000 in fake withdrawal and tax fees. Her mother transferred $9,000 to her – just one day before her death.
A crypto expert later testified that the fees were entirely fictitious. Furthermore, DeLuney didn’t invest the money – instead, she used it to pay off credit card debt, stream services, Afterpay installments, and even bought a lottery ticket.

A Pattern of Deception
Bank records showed a series of suspicious deposits – including eight cash deposits totaling $18,000 in one day. Such patterns often signal attempts to disguise the origin of funds. Investigators also found that DeLuney invested only $1,200 in crypto – the rest went to cover her personal financial troubles.

Blockchain as Evidence
Despite DeLuney’s belief that crypto would provide anonymity, blockchain transparency worked against her. Investigators were able to trace every transaction. “Unlike cash-based investigations, blockchain offers a unified, immutable ledger,” experts noted.

Inconsistent Testimony and Blood Evidence
DeLuney claimed she left the house to seek help after her mother fell, only to return and find her dead. But police uncovered timeline inconsistencies and blood traces throughout the house, including the attic stairs.
The defense insists DeLuney is innocent and that the police are unfairly targeting her as the sole suspect. The trial continues, and the outcome could shape public perception of cryptocurrencies and their potential misuse.

#CryptoCrime , #Cryptoscam , #bitcoin , #CryptoFraud , #CryptoNews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

1️⃣ The Token That Was Never Meant to Last

In October 2021, a new cryptocurrency called Squid Game Token (SQUID) launched, inspired by the hit Netflix series. Investors rushed in, hoping to ride the hype.

✔️ SQUID’s price skyrocketed, reaching $2,861 per token in just a few days.

✔️ Thousands of investors poured money into it, believing it was a legitimate project.

✔️ Then, in an instant, the token crashed to nearly zero—wiping out millions in investments.

2️⃣ The Warning Signs No One Saw

🚨 No official connection to Netflix—SQUID was never endorsed by the creators of Squid Game.

🚨 No way to sell the token—Investors could buy SQUID, but the contract blocked them from selling.

🚨 Anonymous developers disappeared—The creators vanished, taking all the money with them.

3️⃣ The Aftermath: A Classic Rug Pull

✔️ Investors lost millions, with no way to recover their funds.

✔️ Crypto experts warned about scam tokens, urging people to research before investing.

✔️ Regulators cracked down on fraudulent projects, increasing scrutiny on meme coins.

4️⃣ Lessons Learned

✔️ Always verify a project’s legitimacy—SQUID had no real backing.

✔️ If you can’t sell, it’s a scam—SQUID’s contract prevented investors from exiting.

✔️ Hype doesn’t equal value—Just because a token is trending doesn’t mean it’s safe.

#SquidGameScam #CryptoFraud #RugPull #Write2Earn

This is just the beginning—Season Two will uncover the real stories that shaped crypto history. 🚀🔥