- MEXC froze over 1,500 accounts involved in a coordinated market manipulation scheme.
- The investigation revealed institutional-level actors using algorithmic strategies.
- Suspicious accounts had daily trading volumes exceeding $20 million, causing volatility spikes.
MEXC has taken a major step in tackling market manipulation by freezing over 1,500 accounts linked to sophisticated trading schemes across Vietnam and CIS countries.
Beyond suspending the flagged accounts, MEXC plans to share its findings with regulators and implement enhanced surveillance measures. The exchange warned that if left unchecked, such manipulations could trigger mass liquidations and systemic instability.
MEXC Exposes Institutional-Scale Market Manipulation in Crypto
MEXC’s latest investigation uncovered an evolving threat in crypto markets—manipulation shifting from individual retail traders to large, organized groups with institutional-level strategies. By leveraging advanced trading algorithms, these groups engaged in self-trading and high-frequency manipulation tactics, inflating market activity while misleading other traders.
The exchange reported that certain accounts recorded daily trading volumes exceeding $20 million, with market volatility spikes reaching 120% on affected trading pairs. These tactics not only distort asset prices but also create an unfair playing field, driving away genuine traders and institutional investors concerned about market integrity.
To counteract these risks, MEXC has introduced an enhanced surveillance system, placing flagged accounts under strict monitoring for 30 days. Additionally, the exchange is actively rolling back suspicious transactions and collaborating with authorities to prevent similar manipulative practices in the future.
The case also raises questions about broader regulatory challenges. As market manipulation becomes more sophisticated, exchanges may face pressure to implement stricter compliance measures, potentially reshaping the future of decentralized trading. The balance between market freedom and security remains a key debate within the industry.
MEXC’s crackdown underscores the growing risks of institutional-level market manipulation in crypto. The exchange’s actions may set a precedent for stricter oversight, signaling a shift in how the industry tackles financial misconduct.
“Regulation is not a silver bullet, but without it, manipulation will thrive.” — Anonymous Crypto Analyst
