MEXC, a cryptocurrency trading platform, released a security report covering July and August 2026 detailing its efforts to identify and block fraudulent fund transfers on its platform.
During the two-month period, MEXC said it intercepted all 215 reported cases involving externally stolen or fraud-related funds flowing into the exchange, totaling 38,655,490 USDT. The exchange noted this represented increases of approximately 2,971% in the number of cases and approximately 12,646% in the value of intercepted funds compared with the previous reporting period. Of these cases, 42 involved assistance with judicial freezes.
MEXC identified and restricted 20,752 accounts associated with risk-related activities during July and August, up 118.03% from the prior period. The platform also identified 5,288 risk groups, representing a 20.35% increase. According to regional analysis, these groups were concentrated primarily in the Commonwealth of Independent States (1,803), Nigeria (1,099), and Indonesia (976).
The exchange processed 818 applications to return misdirected assets during the period, returning the equivalent of 602,225 USDT.
Insurance Fund and Reserve Ratios
As of September 1, 2026, MEXC's Futures Insurance Fund reached a total balance of 791,696,422 USDT, up 5.44% from the previous reporting period. The fund covers negative balances that may arise during liquidation, providing protection during extreme market conditions.
MEXC disclosed reserve ratios for four major assets, all maintained above 100%:
- Bitcoin (BTC): approximately 288% reserve ratio
- Ethereum (ETH): approximately 113% reserve ratio
- USDT: approximately 115% reserve ratio
- USDC: approximately 114% reserve ratio
The exchange stated that on-chain addresses corresponding to these reserve assets have been disclosed for user verification through Merkle Tree technology.
Industry Context
The report noted that the broader cryptocurrency industry recorded 184 security incidents during July and August 2026, with reported losses totaling approximately 535 million dollars. Phishing and fraud incidents, combined with endpoint and supply-chain security incidents, accounted for approximately 48% of the total.
