The cryptocurrency exchange MEXC has released its quarterly report on fraud attempts on its platform for the first three months of 2025. During this period, 80,057 cases of fraudulent activity were detected, which is a 200% increase compared to the previous quarter.
This is reported by Business • Media
Main Reasons for the Increase in Fraud and New Trends
The report states that the primary reason for the rapid increase in incidents is the low financial literacy of users, which is actively exploited by malicious actors. Among the typical schemes recorded are coordinated trading for money laundering, various manipulations, the use of automated bot networks, and other types of fraud. Exchange specialists identified about 3,000 organized groups operating on the platform.
Another factor attracting fraudsters is the low trading fees on MEXC and the lenient listing policy, which allows for the addition of promising tokens at early stages of project development. The company emphasizes that there is a shift in the tactics of malicious actors: while in 2021 they primarily focused on attacks in the DeFi sector, in 2025 market manipulation through social engineering is predominant.
“If 2021 was marked by hacks in the DeFi sector, then 2025 is increasingly characterized by market manipulation using social engineering. We are observing a growing number of so-called ‘educational’ trading groups, which apparently represent coordinated efforts to deceive users,” said the exchange’s CEO, Tracy Jin.
Geography of Incidents: India, CIS, and Indonesia Lead
In terms of markets, the most fraud was recorded in India, where the exchange blocked about 27,000 accounts. Next are the CIS countries with 6,404 blocked accounts, followed by Indonesia with 5,603 blocked accounts. It is worth noting that Indonesia experienced a rapid increase in the number of incidents, reaching 1,303% over the quarter.
The company emphasizes that many new users come to the platform through viral campaigns or the influence of external influencers. However, not all advice circulated online is reliable. Fraudsters often disguise themselves as financial experts, making followers vulnerable to manipulations disguised as investment strategies.
In the context of cryptocurrency market security, it is worth mentioning that in May 2025, total losses from hacker attacks in the crypto sphere reached $244.1 million.