MEXC’s Enhanced Risk Controls Spark Tensions With KOL Over Regulatory Risks

Exchange MEXC is doubling down on risk control measures as trading platforms worldwide face mounting pressure to combat ￰0￱ company announced new enforcement steps aimed at cracking down on fraudulent syndicates, bot-driven trading, and suspicious capital ￰1￱ actions have also sparked tension with a prominent KOL, whose account was frozen amid compliance-related ￰2￱ to the company, more than 17,000 accounts were restricted during July and August, representing over 3,000 fraud ￰3￱ use of AI-powered risk models, MEXC said, has helped reduce fraudulent activity by 62% compared to earlier ￰4￱ platform also implemented stricter compliance checks on accounts with unusual fund ￰5￱ accounts remain under restriction after failing to meet advanced KYC standards, with reports filed to regulators in recent months.

MEXC’s moves coincide with a dispute involving TheWhiteWhale, a crypto influencer who alleged his account was frozen without cause and launched a $2 million campaign against the ￰6￱ countered with a statement suggeting the account may be tied to compliance risk, underscoring the challenges exchanges face in balancing regulatory enforcement with user ￰7￱ dilemmas have also been faced by other major exchanges, including ￰8￱ to MEXC’s statement , compliance and legal risks refer to accounts linked to unusual funds, such as those associated with criminal activity, sanctioned entities, or stolen ￰9￱ has reinforced restrictions on bot trading in its futures markets after detecting a surge in violations of platform ￰10￱ exchange said the measure is intended to protect retail users, who are often at a disadvantage against automated ￰11￱ July and August, 2,008 bot accounts were identified and restricted — a 24% increase compared with the previous two months.

Disclaimer: This article is provided for informational purposes ￰12￱ is not offered or intended to be used as legal, tax, investment, financial, or other advice.