MEXC exec apologises after spat with customer over $3m as allegations mount

[Oshosondy]

I can still remember that I saw this on the news few months ago, when the person accused MEXC of freezing his money, MEXC has finally apologized and given him his $3 million..

https://www.dlnews.com/articles/markets/mexc-exec-apologises-after-spat-with-customer-over-3m/


But the thing is that there are some people that can be victims of MEXC like this man.

We traders are really trying because these centralized exchanges have their own bad sides.

Although I am using the exchange but nothing happened to my money yet but it is a small amount of money I have on the exchange which I can afford to lose.

One of the person that I know that his account coin was freezed some weeks ago was given his money after 2 weeks but he provided source of fund before his coin was given him. This can really be frustrating and inconvenient.

[joniboini]

I skim read the article and the comments is nice damage control, whether what the company says is the truth or not, only time will tell. I think it's easy to assume they'll probably fire one or two guys who handle the technical aspect of such things, and then move on as usual. It's a bit worrying that they also said that the pressure from White (the customer whose money got frozen) is what makes them do this introspection. You can interpret that as if someone has no power it's unlikely they'll change anything.

[TryNinja]

I had to dig in to find the context, so here it is...

White Whale makes a X post talking about MEXC locking his funds for bs reasons: https://x.com/TheWhiteWhaleV2/status/1983593052179669258

Later he posts an update about their CSO wanting him to "admit" he broke the rules and that MEXC was "open" to releasing the funds if he helped the narrative: https://x.com/TheWhiteWhaleV2/status/1983572679715086524

[Darker45]

That man should've even asked for some damages. That's millions of trade funds stuck because of MEXC's incompetence and shady behavior.

But the thing is that there are some people that can be victims of MEXC like this man.

No, it's not just a possibility. It's a certainty. There are surely people who are victims of MEXC, and other centralized exchanges for that matter. The difference is that most of them are easily bullied. Most of them easily succumb to threats. They meekly comply. They lose sleep but eventually move on despite their concerns not addressed at all.

The only reason why MEXC caved in this time around is the standing of their victim--a former CEO, a trader who makes orders in millions, who's kind of influential on social media with tens of thousands of followers, and who stands his ground and doesn't give in to threats and shady negotiation offers.

The victim is right. There are "people who did not have as large of a microphone as mine." I'm imagining those who can't even express themselves in a foreign language. And so, despite the refund and the apology, "the war is far from over. And this isn't just a war against MEXC." 

[God Of Thunder]

I think some of us are also aware of the HTX scam. There are also scam accusations against HTX in this forum. I hope HTX will show up one day and release these millions of dollars, just like Mexc. I would be happier if HTX owner Justin Sun got arrested for the scams his exchanges are committing. Still good to see MEXC apologize. It is never recommended to use Centralized exchanges or any services with such an amount.

I may trust an exchange with a few hundred or maybe thousands of dollars. But not more than 10K, forget about a million dollars (I know I am not a millionaire).

[OmegaStarScream]

Not sure how many of you are following the situation, but it just got way bigger. More people (including another influencer with a large amount) are accusing them for locking funds "for suspicious activity", whether that's the truth or not, I'm not sure... but it's probably best to withdraw if you can.

It's also kind of strange, there is a LOT of talk about them being insolvent, and all... but at the same time, their balance shown in Arkham is not really moving in a way you would expect from an exchange that everyone is afraid of touching.

[logfiles]

More of such crazy things are going to happen in the future, or they may already be happening, but some people may not have a bigger platform to vent from. MEXC was one of those exchanges that I expected to be a little relaxed with KYC or AML policies, but I think they are now starting to act erratic.

I also perfectly understand why so many users should be wary of MEXC or other centralized exchanges for that matter

[$crypto$]

More of such crazy things are going to happen in the future, or they may already be happening, but some people may not have a bigger platform to vent from. MEXC was one of those exchanges that I expected to be a little relaxed with KYC or AML policies, but I think they are now starting to act erratic.

I also perfectly understand why so many users should be wary of MEXC or other centralized exchanges for that matter

Yes it was --- a few years ago MEXC was lax on KYC/AML but now it is stricter and leads to many problems especially from customers whose funds are often frozen for no reason.

IMO MEXC is more dangerous than other exchanges that have experienced --- because once the funds were held after wanting to make a withdrawal, after sending many tickets managed to get the funds back and that's where not using this exchange anymore.

[bbc.reporter]

I skim read the article and the comments is nice damage control, whether what the company says is the truth or not, only time will tell. I think it's easy to assume they'll probably fire one or two guys who handle the technical aspect of such things, and then move on as usual. It's a bit worrying that they also said that the pressure from White (the customer whose money got frozen) is what makes them do this introspection. You can interpret that as if someone has no power it's unlikely they'll change anything.

I reckon that after the big market dump on our faces with our mouths open that occurred on October that was rumored to be caused by Binance, it is also being rumored that there is an exchange that is insolvent. The strongest from all of these rumors is Mexc is the insolvent exchange.

The skeptical me is thinking that this agreement to unfreeze and give the trader is money might only be something to make it appear that they are not insolvent.

[albon]

I reckon that after the big market dump on our faces with our mouths open that occurred on October that was rumored to be caused by Binance, it is also being rumored that there is an exchange that is insolvent. The strongest from all of these rumors is Mexc is the insolvent exchange.

The skeptical me is thinking that this agreement to unfreeze and give the trader is money might only be something to make it appear that they are not insolvent.

This might be exactly what MEXC is trying to do, hide the fact that it might be heading toward insolvency in order not to cause panic among its users.

However, I noticed that the exchange responded to the rumors, claiming that these claims are false and misleading, and that MEXC remains in a good financial position, with all user assets fully backed. ^[SOURCE]

I also found a sarcastic comment under their tweet about this matter, where someone said: ^[SOURCE]

“All user assets are fully backed… by other users’ assets that can be seized at any time, lol.”
 
Personally, I believe that what happened to FTX could easily happen to any other CEX. Therefore, it's the responsibility of every investor not to put their full trust in these exchanges and shouldn’t wait to find out whether the rumors are true or not.

We must take precautionary measures in advance. It's best to spread our funds across multiple exchanges and not deposit large amounts all at once. Personally, I don’t use MEXC, and I never will; this exchange is bad enough for me to stay away from it completely.

[7juju]

Of course things like this can be very frustrating especially if you are in need of the funds and you have no other means of getting money. Although the thing is that if the exchange did mention it in their term of service that if you receive a certain amount in the exchange that you will provide proof of funds, then I don't blame the exchange. Some of these things are already provided in users agreement, but most of us don't read them properly when creating account in exchanges. So when we go against it and exchanges take action, we might think they are doing us weaknesses.