MEXC Suspends 1,500 Accounts in Major Crypto Market Manipulation Scheme.

Cryptocurrency exchange MEXC has uncovered a massive market manipulation scheme, suspending over 1,500 accounts involved in sophisticated and coordinated fraudulent activities.

Following an extensive internal investigation, the exchange identified alarming patterns of suspicious trading, particularly in regions like Vietnam and the Commonwealth of Independent States (CIS).

Shockingly, some of these accounts were executing trades exceeding $20 million daily, triggering serious concerns about potential systemic risks that could shake the very foundation of the crypto market.

Sharp Rise in Malicious Trading Activity in Early 2025

MEXC’s investigation follows a shocking 60% surge in malicious trading activity between January and February 2025 compared to late 2024.

This massive uptick highlights a troubling trend, signaling that the manipulation of crypto markets is becoming increasingly organized and sophisticated, evolving from retail traders to large-scale, institutional-level schemes.

Institutional-Level Tactics Unveiled: Market Manipulation Evolved

The complexity of these manipulations has grown, with the perpetrators employing advanced trading techniques typically reserved for high-frequency trading (HFT) firms.

These methods included self-trading, spoofing (creating fake orders to mislead other traders), layering (setting up false market depth), front-running (trading ahead of large orders), and quote stuffing (flooding the market with orders to slow down trading systems).

The involvement of institutional-grade tools and algorithms suggests that these are no longer the tactics of individual retail traders but highly organized groups with significant resources.

Enhanced Surveillance Measures and Suspended Accounts

In response to this growing problem, MEXC has taken action by rolling back fraudulent trades and suspending the affected accounts. Additionally, the exchange has rolled out stricter monitoring systems.

Any accounts involved in potentially manipulative activities will now be placed under enhanced surveillance for a minimum of 30 days. During this period, MEXC’s team will analyze the accounts for signs of malicious intent or collusion.

If such activity is detected, those accounts will be blocked and referred for further internal investigation.

Growing Industry Concerns: Calls for Stronger Regulation

MEXC's announcement comes amid growing security concerns within the cryptocurrency industry. Notable events, including the $1.5 billion Bybit hack and suspicious trading activity on decentralized finance (DeFi) platforms such as eXch and THORChain, have highlighted the urgent need for more stringent oversight.

These incidents have sparked widespread discussions within the crypto community about the necessity of regulatory intervention to curb manipulation and safeguard market integrity.

MEXC’s actions emphasize the rising complexity of illicit activities in the space, with these advanced manipulation tactics increasingly threatening the stability of the broader crypto market.

MEXC (formerly known as MXC) is a global cryptocurrency exchange that provides a platform for trading various digital assets, including popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and many altcoins.

Founded in 2018, MEXC aims to provide a secure, efficient, and user-friendly environment for crypto trading. The exchange offers a range of services for both beginners and experienced traders, including spot trading, futures trading, margin trading, staking, and more.

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