MEXC exchange has reported a significant 200% increase in cryptocurrency fraud incidents across emerging markets during the first quarter of 2025. The company identified over 80,000 fraudulent cases, a threefold rise compared to previous periods, primarily affecting regions such as India and Indonesia. The surge in fraud represents a shift from earlier technical exploits in decentralized finance (DeFi) towards more socially engineered scams, including manipulative 'educational' trading groups that deceive inexperienced users through market manipulation tactics.
Tracy Jin, MEXC’s Chief Operating Officer, emphasized that these new sophisticated scams add complexity beyond traditional fraud. In response to these developments, MEXC has strengthened its real-time fraud detection systems and manual reviews to better protect its users. The exchange's aggressive token listing strategy combined with low trading fees has attracted both legitimate traders and fraudulent actors, necessitating urgent improvements in security and user education.
This rapid rise in fraud correlates with the expanding cryptocurrency market and increasing user base in emerging economies, highlighting vulnerabilities in less experienced markets. Experts stress the need for enhanced educational and preventative measures to safeguard new crypto participants worldwide.