MEXC faces backlash against account freezes and withdrawal delays

Many crypto users and industry observers have raised red flags regarding the Global Exchange MEXC over account freezes and withdrawal restrictions.

Coinbase exchange followed the same pass before the platform’s CEO promised to cut account freezes by 82%.

MEXC faces a crisis of trust as withdrawal restrictions raise the red flag

MEXC Exchange faces charges ranging from voluntary account freezes to possible bankruptcy. User concerns suggest that a growing trust crisis may be forming around the platform, with several warnings in patterns consistent with Ponzi-like behavior.

“In recent months, Cryptocurrency Exchange MEXC has been monitored for a surge in account freezes and withdrawal restrictions, often without clear or valid justification,” writes Defi Researcher Master of X (Twitter).

He cited multiple high netizens whose balances in the 7-8 digit range are targeted. MEXC reportedly mainly automates support responses, but senior managers remain “not harassing to fix these abuses.”

This post has been added to the list of confirmations from other users claiming similar experiences. Some claim they support them from the funds after gaining profits from the transaction.

Meanwhile, others claim they received vague flags of “abnormal activity” before their accounts were frozen.

More closely, one user described personal experiences in which an account was flagged and locked after an attempt to withdraw.

“It all seemed to be fine… Then I tried to withdraw. I didn’t do anything. “Pending.” Time has become daily.

After the investigation, this particular user reportedly revealed “hundreds of similar stories.”

MEXC did not immediately respond to Beincrypto’s request for comment.

Ambiguous justifications can have real consequences for MEXC

MEXC has not issued a formal official statement addressing recent allegations. Nevertheless, the platform had previously claimed it had cracked down on operations.

On March 25, MEXC reported that it had frozen more than 1,500 accounts related to the adjusted market manipulation ring.

The affected accounts were engaged in spoofing, self-trading and algorithmic tactics with daily sales of over $20 million, according to the exchange.

“We document the transformation of operations from retail to group, and even at the semi-institutional level, which poses systematic risks across individual exchanges and market infrastructure,” reads an excerpt from the press release.

However, critics argue that the vague justification of “abnormal activity” is the reason for the blanket, which delays or rejects withdrawals, even in just cases.

On the other hand, escalating complaints occur when users are particularly sensitive to account freezes.

Beincrypto recently reported that Coinbase reduced account freeze accidents by 82% following public pressure and internal overhauls.

Coinbase CEO Brian Armstrong admitted that the issue has continued “for longer than it is acceptable,” but said the exchange prioritized the fix with continuous improvements.

This response is in stark contrast to the MEXC and Coinbase approaches, and encourages speculation that MEXC issues are beyond customer service.

“The pace and nature of account freezes in MEXC are similar to warning signs that are usually associated with pyramids or Ponzi schemes. They seem to be digging their own grave,” the Master added.

According to users, MEXC limits spills and avoids accountability while prioritizing new influxes.

In particular, this is a developing story, with more updates coming in when MEXC issues a formal explanation of concerns about the platform’s solvency and operational integrity.

The MEXC post first appeared on Beincrypto, facing a backlash against account freezes and delays in withdrawal.