MEXC Intercepts 38.66M USDT in Risk-Related Funds
MEXC, the zero-fee digital asset exchange, released its July–August 2026 security report on September 16, revealing that it successfully intercepted all 215 reports of risk-related funds, totaling 38.66 million USDT. The exchange assisted with 42 judicial freezes and shared suspicious addresses with industry peers to trace fund flows.
Compared to the previous reporting period, the number of intercepted cases surged by approximately 2,971%, while the value of intercepted funds skyrocketed by 12,646%. This dramatic increase underscores MEXC’s enhanced capability to identify and block illicit funds before they can be laundered or withdrawn.
Over 20,000 Accounts Restricted, 600,000 USDT in Misdirected Assets Returned
In its account risk identification efforts, MEXC identified and restricted 20,752 accounts linked to risk-related activities, a 118.03% increase from the prior period. The platform also flagged 5,288 risk groups, up 20.35%, with the highest concentrations in the Commonwealth of Independent States (1,803), Nigeria (1,099), and Indonesia (976).
For user asset recovery, MEXC manually processed 818 applications for the return of misdirected assets, returning 602,225 USDT, a 75.31% increase. These figures highlight the exchange’s proactive approach to protecting user funds and maintaining trust.
Futures Insurance Fund Reaches 792M USDT, Bolstering Negative Balance Protection
As of September 1, 2026, the MEXC Futures Insurance Fund balance stood at 791,696,422 USDT, up 5.44% from the previous period. The fund covers negative balances that may arise during liquidation, providing a buffer during extreme market volatility and reducing the likelihood of auto-deleveraging (ADL).
When a liquidated position is closed at a price better than the bankruptcy price, the remaining funds are credited to the insurance fund. Users can monitor the real-time balance on MEXC’s Proof of Trust page.
Reserve Ratios for BTC, ETH, USDT, USDC Remain Above 100%
MEXC’s proof of reserves for the period shows reserve ratios above 100% for four major assets. Bitcoin (BTC) has a reserve ratio of approximately 288%, with total wallet assets of 12,312.75 BTC against 4,282.20 BTC in user assets. Ethereum (ETH) shows a ratio of about 113%, with 66,227.79 ETH in wallet assets. USDT has a ratio of roughly 115%, with total wallet assets of approximately 1.94 billion USDT, while USDC stands at about 114%, with 194.85 million USDC.
The on-chain addresses for these reserve assets are disclosed, allowing users to verify via Merkle Tree whether their balances are included.
Guardian Fund Expansion and Cross-Platform Cooperation
As an additional layer of protection, the MEXC Guardian Fund maintains a dual-reserve structure of USDT and BTC, with USDT providing immediate liquidity and BTC serving as a long-term reserve. MEXC plans to expand the fund from $100 million to $500 million. The holding addresses are publicly listed: USDT on Ethereum (0x469AfE803C54A36674C55231489Cf4b61da8c1bC) and BTC (1MDVjZdX8QD212pT8Z8EMP7DuFQHKqN3mx).
MEXC CEO Vugar Usi stated, “Trust is the true reserve currency of this industry. Protecting user assets means moving decisively the moment risk emerges, while giving users something they can verify for themselves, not just our word for it.” He added that the exchange will continue to strengthen its ability to intercept risk-related funds, deepen cooperation with law enforcement, and help affected users recover losses.
Industry-Wide Security Challenges Intensify
In July and August 2026, the crypto industry recorded 184 security incidents with reported losses totaling approximately $535 million. Phishing and fraud, along with endpoint and supply-chain attacks, accounted for about 48% of the total. Attackers are increasingly using AI to auto-generate phishing content and malware, boosting attack efficiency.
As attack methods diversify, promptly identifying and intercepting risk-related funds and strengthening cross-platform investigation become critical to reducing user losses. MEXC’s report highlights the importance of collaborative efforts in mitigating these threats.
What to Watch: Reserve Ratios and Fund Growth
Investors should monitor MEXC’s reserve ratios and insurance fund balance in the next report, expected in November 2026. A decline below 100% for any major asset or a slowdown in fund growth could signal weakening risk management. Conversely, continued increases would reinforce confidence in the exchange’s stability.
Additionally, the expansion of the Guardian Fund to $500 million, if achieved, will be a key milestone to track. Market participants should also watch for broader industry security trends, as AI-driven attacks may escalate.
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