• Fraud attempts on MEXC doubled to 80,057 in Q1 2025, with over 3,000 fraud syndicates identified.

  • India, Indonesia, and CIS regions lead in flagged accounts, with Indonesia seeing a 1,303% fraud increase.

  • MEXC enhances real-time detection, risk controls, and plans new educational initiatives to combat rising fraud.

Crypto exchange MEXC has revealed a rise in trading fraud during Q1 2025 through a recent blog post. The platform noticed a 200% quarter-over-quarter surge in fraudulent trading attempts. Fraud activity is focused mainly in India, Indonesia, and the CIS region. MEXC’s report indicates that this increase stems from wash trading, market manipulation, and automated bot operations. These developments underscore emerging risks within fast-growing crypto markets and demand stronger risk controls.

Surge in Fraudulent Activity Across Regions

MEXC identified 80,057 fraud attempts in Q1 2025, doubling from the previous quarter. The exchange uncovered over 3,000 distinct fraud syndicates involved in these schemes. India recorded nearly 27,000 suspicious accounts, making it the highest source of fraud. Indonesia followed with 5,603 flagged accounts, and the CIS region accounted for 6,404. Indonesia’s suspicious activity rose by 1,303% compared to Q4 2024. Meanwhile, the CIS region’s fraud cases increased by 245%.

Source: MEXC

Two main factors contributed to the surge: MEXC’s proactive listing of emerging market tokens and its low trading fees. These features attract many retail and institutional users. However, they also appeal to bad actors seeking low-cost, high-liquidity venues for manipulation. Rapid user growth in these regions often outpaces financial literacy levels. According to the National Centre for Financial Education, only 27% of Indian adults meet basic financial literacy standards. Among Indian millennials, just 19% demonstrate adequate financial understanding despite high confidence.

Social Media Influence and Market Vulnerabilities

Many new users join crypto markets through viral campaigns or influencer recommendations. However, some influencers provide misleading advice or act maliciously. Fraud syndicates use platforms like Telegram and YouTube to promote “pump groups” and “secret token launches.” 

These tactics exploit retail investors with limited financial knowledge. In Indonesia and the CIS region, economic conditions foster demand for high-risk token speculation. Research shows many investors there seek high rewards despite significant risks. Informal social trading circles have formed, but some groups fall prey to coordinated manipulative efforts.

MEXC’s Risk Management Measures

MEXC uses real-time fraud detection and prioritizes surveillance of small-cap tokens. The exchange employs a multi-layered risk control system combining automated tools, human review, and regional escalation. Suspicious accounts face temporary restrictions under AML rules aligned with FATF guidelines. These measures protect users from manipulative trading behavior and uphold market fairness.

MEXC plans to update its Risk Control Guidelines and expand user education efforts in affected regions. The exchange aims to increase transparency and strengthen protections. It will also launch the MEXC Guardian Safe Trading campaign and Guardian Fund to support fraud victims. This surge in market manipulation echoes previous trends reported in March, particularly in the CIS and Vietnam. The data reflects ongoing, region-specific fraud cycles impacting crypto trading platforms worldwide.