MEXC Faces Backlash Over Account Freezes and Withdrawal Delays

Many crypto users and industry observers are raising red flags about global exchange MEXC over account freezes and withdrawal restrictions.

Coinbase exchange used to follow the same path before the platform’s CEO committed to reducing account freezes by 82%.

MEXC Faces Trust Crisis as Withdrawal Restrictions Raise Red Flags

MEXC exchange faces accusations, ranging from arbitrary account freezes to possible insolvency. User concerns suggest that a widening trust crisis may be forming around the platform, with some warning of patterns consistent with Ponzi-like behavior.

“In recent months, the cryptocurrency exchange MEXC has come under increasing scrutiny for a surge in account freezes and withdrawal restrictions, often without clear or valid justification,” wrote DeFi researcher Master on X (Twitter).

He cited multiple high-net-worth users with balances in the seven- to eight-figure range being targeted. Allegedly, MEXC largely automates support responses, while upper management remains “unresponsive” and “unwilling to correct these abuses.”

The post adds to a list of confirmations from other users claiming similar experiences—some allege that they have supported out of their funds after profiting on trades.

Meanwhile, others claim to have received vague flags for “abnormal activity” before their accounts were frozen.

More closely, one user described a personal experience in which his account was flagged and locked after an attempted withdrawal.

“Everything seemed fine… then I tried to withdraw. Nothing. ‘Pending.’ Hours turned into days. Support? Radio silence. Auto-replies, no resolution,” the user wrote.

After investigating, this particular user reportedly uncovered “hundreds of similar stories. MEXC did not immediately respond to BeInCrypto’s request for comment.

Vague Justifications May Have Real Consequences for MEXC

MEXC has not issued a formal public statement addressing the recent allegations. Nevertheless, the platform had earlier claimed to be cracking down on manipulation.

On March 25, MEXC reported freezing over 1,500 accounts tied to coordinated market manipulation rings.

According to the exchange, the affected accounts were engaged in spoofing, self-trading, and algorithmic tactics with daily turnover exceeding $20 million.

“We are recording the transformation of manipulations from the retail to the group and even quasi-institutional level, which carries systemic risks for both individual exchanges and the market infrastructure as a whole,” read an excerpt in the press release.

However, critics argue that the vague justification of “abnormal activity” is a blanket reason to delay or deny withdrawals even in legitimate cases.

Meanwhile, the escalating complaints come when user sensitivity to account freezes is particularly high.

BeInCrypto recently reported that Coinbase had slashed its account freezing incidents by 82%, following public pressure and an internal overhaul.

Coinbase CEO Brian Armstrong admitted the issue had persisted “longer than acceptable,” but said the exchange made it a priority to fix, with ongoing improvements.

This response starkly contrasts with MEXC and Coinbase’s approach, fueling speculation that MEXC’s problems go beyond customer service.

“The pace and nature of MEXC’s account freezes resemble the warning signs typically associated with pyramid or Ponzi schemes…They seem to be digging their own grave,” Master added.

According to the user, MEXC restricts outflows and avoids accountability while prioritizing new inflows.

Notably, this is a developing story, with more updates once MEXC issues a formal explanation regarding concerns over the platform’s solvency and operational integrity.

The post MEXC Faces Backlash Over Account Freezes and Withdrawal Delays appeared first on BeInCrypto.

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