Crypto exchange MEXC saw fraudulent trading jump by 200% from January to March 2025, according to its latest quarterly report. The exchange detected 80,057 organized fraud attempts during this period.
Over 3,000 separate fraud groups were involved in tactics such as market manipulation, wash trading, and using bots to exploit users with unfair trade executions.
Regional Breakdown
MEXC’s data highlights that most of these fraud attempts came from India, Indonesia, and the Commonwealth of Independent States (CIS) region. India led the list with nearly 27,000 flagged accounts.
Indonesia followed with 5,603 accounts, and the CIS region accounted for 6,404. In percentage terms, Indonesia saw the highest increase, with suspicious activity up by 1,303% compared to the previous quarter, while the CIS region rose by 245%.
Underlying Causes
Two main factors may explain this surge in fraud. First, MEXC’s strategy to list new tokens from emerging markets attracted many users. Second, both institutional and retail traders were drawn to the exchange because of its low trading fees.
Despite their popularity, these qualities also made it easier for criminals to find low-cost, high-liquidity locations. These markets saw rapid user growth that frequently exceeded platform literacy and financial education, leaving users more vulnerable.
Compared to the global average of 42%, only 27% of Indian people achieve basic financial literacy norms, according to a February 2025 research by the National Centre for Financial Education.Â
Among Indian millennials, just 19% show adequate understanding of financial matters. This gap makes it easier for fraud syndicates to recruit and manipulate users through viral campaigns and third-party influencers.
Platform’s Response
To address the rising risks, MEXC is bolstering its risk control framework. The exchange has deployed real-time detection systems, prioritizing surveillance of small-cap assets and flagging anomalous trading behaviour.
Its multi-layered approach includes automated monitoring, human review, and regional escalation procedures. Under international anti-money laundering regulations and internal procedures in line with FATF guidelines, suspicious accounts exhibiting unusual order patterns are temporarily blocked.
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Tracy Jin, MEXC’s Chief Operating Officer, noted that 2025 is marked by coordinated, socially engineered market manipulation rather than the DeFi exploits seen in earlier years.
She emphasized the importance of proactive protection and improved user education, particularly for younger investors who might put their trust in “educational” trading groups that are fronts for manipulation.
Rising Security Threats
Coinbase disclosed a ransom attempt and data breach in May 2025 that may have impacted as many as 70,000 users.
Hackers took user identity information, such as phone numbers, addresses, and names. No private keys or funds were taken, but the incident underscored the growing security challenges in the crypto industry.Â
MEXC highlighted that while no system can entirely prevent such attacks, educating users remains crucial. MEXC plans to release an updated Risk Control Guidelines document to improve transparency and awareness about fair trading.
As crypto markets expand, exchanges must continue refining their defences and educating users.
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