MEXC Launches $100 Million Fund to Protect Users from Security Threats

MEXC, a prominent cryptocurrency exchange, has launched a $100 million user protection fund aimed at safeguarding its users from major platform breaches, technical failures, or other serious security threats. This fund is designed to compensate users in the event of significant security incidents, including breaches of the platform’s infrastructure, critical system vulnerabilities, or large-scale targeted hacks. The exchange has published wallet addresses linked to the fund on its website, allowing users to verify balances and monitor fund activity in real-time. Additionally, a dedicated web portal will provide detailed information about the fund’s structure, covered scenarios, and ongoing compensation cases.

The fund will offer coverage in cases where MEXC systems are directly compromised or affected by serious vulnerabilities. Tracy Jin, MEXC’s chief operating officer, emphasized the importance of accountability and delivering visible safeguards when they matter most. Unlike traditional insurance models, which often require lengthy claims processes, MEXC’s fund is designed for quick deployment. Once an incident is confirmed, the exchange can immediately allocate resources to affected users. All compensation decisions are reviewed and approved by MEXC’s dedicated internal team, which includes members from the risk control, compliance, and security departments. Once an incident is verified and reviewed, affected users will undergo a manual eligibility assessment to determine the appropriate compensation based on the nature and extent of the loss.

Currently, the fund management is handled in-house, but MEXC is exploring partnerships with reputable third-party auditing and risk control entities to enhance transparency and oversight in the future. The launch of this fund follows a string of high-profile security breaches across the crypto industry. Hackers made off with over $1.6 billion in crypto during the first quarter of 2025, with the majority linked to a single exploit targeting centralized exchange Bybit, allegedly carried out by North Korea’s Lazarus Group. This initiative by MEXC sets a benchmark for other exchanges to follow, emphasizing the need for proactive measures to protect users from potential risks.

In summary, MEXC's $100 million user protection fund is a strategic move to enhance security and build user trust. By covering platform breaches, hacks, and technical failures, and providing real-time wallet transparency, MEXC is taking significant steps to ensure the safety of its users' assets. This initiative is likely to strengthen MEXC's position in the competitive cryptocurrency exchange market and attract more users who value security and reliability.