MEXC Reports 200% Rise in Crypto Fraud, Flags Over 80,000 Scam Attempts in Q1 2025
Crypto security might be evolving, but so is crypto fraud — and it’s exploding. On May 30, crypto exchange MEXC revealed that detected fraudulent activity on its platform soared by 200% year over year, fueled largely by market manipulation, bot trading, and wash trading attempts.
In Q1 2025 alone, MEXC flagged 80,057 fraud attempts, more than doubling from the same period in 2024. The fraudulent behavior came from over 3,000 coordinated syndicates, using increasingly advanced tactics to exploit new users in volatile markets.
India took the top spot as the global hotspot for crypto fraud, with nearly 27,000 accounts flagged — a 17% year-over-year rise. Indonesia followed with a staggering 5,603 flagged accounts, marking a 1,303% increase, underscoring how rapidly fraud is evolving in Southeast Asia.
The Commonwealth of Independent States (CIS) region also saw a 245% rise in flagged activity, with 6,404 accounts tied to suspicious or manipulative trading behavior.
MEXC’s Chief Operating Officer, Tracy Jin, attributed this rise in fraud to a troubling mix of:
- Low financial literacy in fast-growing crypto markets,
- The spread of fake influencer accounts, and
- The rise of misleading “educational” trading groups used to push scam tokens and exit liquidity schemes.
“We’ve observed a growing number of so-called ‘educational’ trading groups that appear to be coordinated efforts to mislead users,” said Jin. “This highlights the importance of user education, especially for young and first-time investors.”
MEXC emphasized that these scams often rely on social engineering — exploiting trust, hype, and fear of missing out (FOMO) to trap users. Some of the most common tactics include pump-and-dump groups, influencer fraud, and fake financial advisory networks posing as legit crypto coaches.
In response, MEXC announced plans to launch several user education campaigns aimed at helping users recognize and avoid deceptive schemes. These will include in-app alerts, tutorial videos, and regional partnerships with crypto educators.
The spike in fraud mirrors a larger trend in 2024 and 2025. The FBI previously reported that over $9 billion in crypto-related fraud losses were recorded in 2024 alone, with “pig butchering” scams among the most damaging.
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