MEXC Fights Crypto Theft With Security, Refunds & Funds

Centralized crypto exchange MEXC says it’s fighting back against rising fraud, publishing a new report that outlines how it’s blocking hacked funds, reimbursing users, and building what can be called a new security backbone for the industry. The exchange emphasized its commitment to user protection and transparency by introducing real-time monitoring systems, bolstering its internal security infrastructure, and collaborating with third-party auditors.

In its May–June update, says it intercepted $2.2 million in illicit crypto tied to hacks and thefts and returned $559 million to users through its insurance and recovery systems — including during chaotic market swings that left some traders liquidated. This proactive stance is part of MEXC’s broader effort to restore trust in centralized platforms and create a safer trading environment for both retail and institutional participants, setting a benchmark for other exchanges to follow.

Crypto crime is evolving fast

In recent weeks, a surge in deepfake-based KYC fraud has hit multiple exchanges. At the same time, stolen funds are being laundered through centralized platforms before being routed into AI-run mixers and Telegram bots. says it processed 709 user fraud reports, froze accounts in 41 cases, and worked with law enforcement on 124 official asset freezes.

To back all this, the exchange launched a $100 million Guardian Fund — money set aside to pay back users in case of major platform failures or exploits. For transparency, MEXC even published the fund’s wallet addresses.

The exchange also resolved over 2,400 mistaken deposits and restricted 46,000+ suspicious accounts, many linked to fraud rings in India, Indonesia, and the former Soviet bloc. These actions follow MEXC’s earlier internal report highlighting a surge in coordinated market manipulation attempts originating from these regions — including wash trading schemes and pump-and-dump groups targeting low-liquidity tokens.

It’s a signal that some centralized exchanges are trying to future-proof themselves — not just from regulators, but from a smarter class of attackers and users who expect more than just “we’re sorry” when things go wrong.