Key fraud trends identified in Q1 include: coordinated wash trading for money laundering, market manipulation schemes, and a proliferation of automated bot networks. MEXC's security team also uncovered nearly 3,000 organized groups orchestrating these scams.
According to the exchange, the surge in fraudulent activity is primarily driven by the lack of financial literacy among new users—a weakness that fraudsters are quick to exploit. The platform’s low transaction fees and aggressive listing policy, which adds tokens from emerging projects, have also made it an attractive target for malicious actors.
Executive Director Tracy Jin commented on the evolving threat landscape: “While 2021 was marked by DeFi protocol hacks, 2025 is increasingly defined by social engineering and market manipulation. We are seeing a notable rise in so-called ‘educational’ trading groups, which in reality are coordinated schemes designed to deceive users.”
Geographically, India tops the list for detected fraud, with nearly 27,000 accounts blocked. The CIS region follows with 6,404 accounts, and Indonesia is third at 5,603. Notably, Indonesia saw a 1,303% surge in fraud attempts during the quarter.
MEXC highlighted the role of viral campaigns and third-party influencers in attracting new, often inexperienced, users. “Not all investment advice online is trustworthy. Scammers frequently pose as financial experts or influencers, making their followers susceptible to coordinated manipulations disguised as legitimate investment strategies,” the company warned.
For context: A recent PeckShield report revealed that crypto-related hacks in May 2025 alone accounted for $244.1 million in damages, underscoring the persistent vulnerability of the sector.