MEXC Unmasks $4.97M in Fraud as Global Crypto Crime Booms

MEXC has taken significant steps to combat fraudulent activity on its platform, blocking $4.97 million in illicit funds and recovering $902,000 in user funds over a two-month period. The figures emerged from a recent compliance training program conducted in collaboration with law enforcement and regulatory bodies across high-risk regions such as Southeast Asia, the Commonwealth of Independent States (CIS), and Latin America. These areas have been identified as epicenters of crypto-related financial crime, with a United Nations report estimating annual scam revenues from organized crime at nearly $40 billion. Meanwhile, Chainalysis data indicates that over $2 billion in cryptocurrency has been stolen in the first half of 2025, underscoring the growing threat to digital assets.

The joint training initiative, which spanned approximately 160 hours of workshops, lectures, and simulator-based drills, focused on detecting advanced fraud tactics such as deepfake-based KYC submissions, forged documentation, and identity theft. This effort was designed to enhance the compliance team’s ability to identify and act on suspicious activities swiftly. MEXC’s Chief Operating Officer, Tracy Jin, emphasized the industrialized nature of global scam operations, citing the expansion of Southeast Asian crime syndicates into Latin America and Africa. She highlighted systemic issues such as fragmented regulatory oversight, inconsistent onboarding standards, and the misuse of AI and deepfake technologies as key enablers of large-scale fraud.

The impact of the training has already been evident. From July to August 2025, MEXC’s compliance team successfully intercepted 48 suspicious cases, blocking $4.97 million in assets linked to illicit activities. These cases remain under investigation, demonstrating the real-world effectiveness of the compliance measures. During the same period, the team observed a 15% increase in fraudulent liveness cases during KYC checks, with over 3,097 cases detected. The rise in liveness fraud attempts, particularly those leveraging deepfake technology, has emerged as a major focus area for MEXC’s ongoing compliance efforts.

MEXC reiterated that these measures apply exclusively to accounts flagged by internal risk-control protocols and do not affect legitimate users. The exchange reaffirmed its zero-tolerance stance on financial crime, including fraud, money laundering, and market manipulation. Its compliance framework is regularly updated in partnership with leading third-party providers such as Elliptic and LSEG, ensuring alignment with international regulatory standards. The compliance team’s participation in advanced training courses also enables it to stay ahead of evolving criminal methodologies, improving its ability to detect illicit fund flows across jurisdictions.

Looking ahead, MEXC plans to expand the obligation-based training program to all its operational regions, ensuring consistent protection standards globally. This strategic move reflects the company’s commitment to maintaining a secure and trustworthy trading environment for its over 40 million users across 170+ countries. As the crypto industry continues to evolve, MEXC’s proactive approach to compliance and fraud prevention sets a benchmark for responsible digital asset platform operations.

Source:

[1] MEXC Compliance Officers Complete Joint Training With Law Enforcement and Regulators (https://blog.mexc.com/mexc-compliance-officers-complete-joint-training/)

[2] The $40 Billion Scam Industry: MEXC Executive Warns of Industrialized Criminal Networks (https://www.benzinga.com/crypto/cryptocurrency/25/09/47500515/the-40-billion-scam-industry-mexc-executive-warns-of-industrialized-criminal-networks)