Crypto exchange MEXC issued an official statement on November 1, 2025, addressing online rumors about its financial health. The company firmly denied the claims, labeling them as false and misleading, and reassured users that all customer assets are fully secured.
In the announcement, MEXC emphasized that social media speculation about financial troubles has no factual basis. The exchange highlighted that its Proof-of-Reserves (PoR) data confirms all major assets are backed by over 100%, and it plans to update its Merkle tree verification system later that evening. This move allows users to independently verify reserves, aligning with MEXC's long-term commitment to transparency and industry best practices.
The clarification comes after a week of record-high withdrawals from the exchange, which sparked concerns about solvency. Data shared by Whale Insider indicated that withdrawal activity surged to its highest level since 2018 earlier in the year. Charts comparing Bitcoin's price movements with MEXC's withdrawal volumes show that large outflows often occur during periods of heightened market activity, particularly when prices reach new highs. Analysts noted that such spikes may not necessarily signal panic but could reflect traders moving funds to personal wallets for security or profit-taking reasons.
MEXC's leadership underscored its focus on transparency and accountability since its founding, using a multi-source reserve verification framework that combines on-chain data with third-party audits. By updating the Merkle tree proof—a cryptographic tool for verifying holdings against total reserves—the exchange aims to bolster user confidence. All information is publicly available and verifiable, MEXC stated in its full announcement on its official website.
The crypto industry has grown increasingly sensitive to solvency concerns following the collapse of several major exchanges in recent years. Proof-of-Reserves reports have become a key trust indicator, and MEXC's response with a reserve ratio exceeding 100% is seen as an effort to calm market nerves. While it remains to be seen if this will fully restore user confidence, the exchange insists it has nothing to hide and everything to prove.
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