Seychelles-registered popular crypto exchange, MEXC, announced freezing 1500 accounts connected to a “large-scale coordinated group of market manipulators.”
On 25 March 2025, MEXC said that a notable concern is the presence of large groups and institutional-level actors in these manipulations. The exchange found that some of the accounts involved showed daily trading volumes of over $20 million, and the participants’ algorithms created short-term distortions on individual pairs with an increase in volatility of up to 120%.
“Such actions, if not promptly identified, could lead to mass liquidations and distortion of the asset’s market price within minutes,” the company said.
“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,” the MEXC press release said.
@MEXC_Official freezes over 1,500 accounts linked to market manipulation.
Crypto exchange MEXC reported a 60% increase in coordinated malicious trading activity compared to the end of 2024.
MEXC identified two coordinated groups that employed a full range of manipulative… pic.twitter.com/voGbhEhesl
— TU Airdrop Daily (@daily_tu69577) March 26, 2025
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MEXC Found Coordinated Groups Engaging In Abusive Trading Practices
During an internal investigation, the company found two coordinated groups of traders — one operating in Vietnam and the other in the CIS countries.
MEXC revealed that these groups were engaging in abusive trading practices, including “self-trading, spoofing, layering, front-running, quote stuffing, spoofing, layering, and other types of market manipulative behaviours.”
However, MEXC stepped in to stop the activities and freeze their accounts.
According to MEXC, these coordinated malicious trading activities have surged by 60% from January to February 2025 compared to late 2024.
What makes this case particularly concerning is the evolution of market manipulation tactics. MEXC noted that these schemes are increasingly utilizing “institutional-level access to liquidity, infrastructure, and algorithmic strategies,” marking a shift from retail-level manipulation to more organized, quasi-institutional operations.
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A Targeted Rollback Of Suspicious Transactions
The company said that it has applied a targeted rollback of suspicious transactions and suspended all identified accounts involved in the scheme.
Now MEXC insisted that all user funds are protected, and the Proof of Reserves system and the platform’s insurance fund allow to cover risks in case of abnormal liquidations.
Tracy Jin, COO of MEXC commented on the incident and said, “We see this case as an indicator of the next wave of threats to digital markets — organized, large-scale, technically equipped groups capable of coordinating actions on dozens of tokens and hundreds of accounts.”
“Without proper synchronization between platforms and regulators, the industry will face a new round of market instability,” Jin added.
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Key Takeaways
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MEXC Cracks Down on Sophisticated Market Manipulation Ring, Freezes Over 1,500 Accounts
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During an internal investigation, the company found two coordinated groups of traders — one operating in Vietnam and the other in the CIS countries.
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MEXC revealed that these groups were engaging in abusive trading practices, including self-trading, spoofing, layering, front-running, quote stuffing, spoofing, layering, and other types of market manipulative behaviors.
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