At MEXC, we are committed to maintaining a fair and transparent trading environment. Recently, our risk management team detected and took swift action against significant market manipulation activities in Vietnam. After a thorough investigation, we have restricted access to accounts involved in severe violations that disrupted market integrity.
Scope of the Issue
Our investigation identified a coordinated group of 44 users operating over 168 accounts to engage in systematic market abuse. These activities posed a serious threat to market fairness and investor confidence.
Identified Violations
Our investigation uncovered multiple forms of market manipulation, including but not limited to:
- Self-Trading: Accounts engaging in transactions where the same entity acts as both buyer and seller, or related accounts trading with each other as counterparties. Indicators include, but are not limited to, shared funding sources, IP addresses, and synchronized trading patterns.
- Spoofing: Frequent placement and cancellation of orders within the same day, deliberately misleading other market participants and affecting price movements.
- Layering: Multiple instances of large-volume order placement followed by cancellations, designed to create false impressions of market depth and manipulate prices.
- Disruptive Algorithmic Trading: Use of programmatic trading methods that threaten system stability and normal market operations.
- Market Manipulation: Coordinated efforts to artificially influence asset prices or trading volumes through deceptive practices, including price inflation, suppression, and misleading order book activity, ultimately distorting fair market conditions.
For detailed information on our risk management protocols and enforcement measures, please refer to this article.
Remedial Actions Taken
To safeguard market integrity, we have implemented the following measures:
- Restricted access to all identified accounts
- Completed verification of violations
- Determined appropriate rollback timelines based on transaction data
- Implemented necessary transaction rollbacks
- Initiated evaluation of account restriction periods
Detection of Abnormal Activity and Investigation Process
When abnormal trading behavior is detected, we conduct a thorough investigation.
- If it is confirmed to have been mistakenly flagged, we will lift the restriction as soon as possible.
- If an issue is confirmed, we will assess whether it involves an individual or a coordinated group. If it is confirmed to be a group operation, stricter measures will be applied.
- The risk control team carefully analyzes transaction data to determine rollback points and freezing durations. In severe cases involving coordinated illicit activities, the risk control period may extend up to 365 days.
- If users believe their accounts were mistakenly flagged, they could contact our Customer Service team for verification. If an error is confirmed, restrictions will be lifted immediately. Based on past data, the rate of accidental risk control triggers is less than 0.1%.
Our Commitment to Market Integrity
MEXC strongly condemns activities that undermine market fairness and harm the interests of other users. We maintain a strict risk control system to identify and address violations according to established protocols. We categorically reject any suggestion of arbitrary freezing of user assets.
Since its establishment in 2018, MEXC has consistently adhered to the principles of fairness and transparency, committed to ensuring the fairness and compliance of all users' transactions and maintaining a healthy market order. Currently, our platform services cover over 170 countries, with more than 32 million users. We implement a strict risk control system and do not arbitrarily freeze user assets. We also guarantee 100% security of user assets. MEXC provides proof of reserves to ensure asset security and maintain a high level of transparency. [MEXC Exchange Proof of Reserves] If there are any questions regarding risk control processes, you are welcome to contact our online customer support for verification at any time. Any restrictions mistakenly triggered will be promptly lifted. MEXC is firmly committed to maintaining market fairness and does not tolerate any non-compliant trading activities that harm user rights.
