MEXC Thwarts Over 70K Fraud Attempts in Q2 as Syndicate Attacks Decline 12%

Cryptocurrency exchange MEXC has published its Q2 Risk Control Summary, revealing a 12% quarter-over-quarter reduction in fraud attempts from organized criminal syndicates. This marks a significant improvement following the dramatic increase the platform experienced during the first quarter of 2025.

Between April and June 2025, MEXC successfully intercepted 70,621 fraudulent attempts connected to 8,501 criminal organizations. The exchange attributes this enhanced security performance to its deployment of AI-powered surveillance systems combined with region-specific response strategies, including dedicated local response teams and targeted user education programs.

Tracy Jin, COO of MEXC, emphasized the platform’s evolving approach to security challenges. “As fraud networks evolve, so must our response. Risk control is not punishment; it’s protection,” Jin stated in the report.

◇ 15 years of building on broken Chains, and no one noticed
developers didn’t fail.
The architecture did.

> For over a decade, we’ve been building DeFi, games, and even institutional products on infrastructure that was flawed from the start. Not just imperfect fundamentally… pic.twitter.com/O83GNTxWzv

— MarwanTech (@Marwanmjunaid) July 31, 2025

Regional Security Patterns Show Mixed Results

The data reveals varying regional trends in fraudulent activity. South Asia experienced the most substantial improvement with a 41% decline in illicit activities, thanks to enhanced detection capabilities, rapid-response teams, and localized educational initiatives. This region had previously shown concerning levels of syndicate-led fraud in Q1.

However, South Asia continues to present challenges with an 11% quarter-over-quarter increase in fraud attempts, though this represents a significant slowdown from the previous quarter’s 1300% surge. In Southeast Asia, Indonesia dominated fraud cases with 73% of the region’s incidents and an 18% increase, while Vietnam accounted for 16% with a 35% rise.

The CIS region recorded the highest relative increase at 83%, though this growth rate was considerably slower than the over 200% spike observed in Q1.

Advanced AI Systems Drive Detection Capabilities

MEXC’s security infrastructure relies heavily on sophisticated AI models that identify irregularities in trading patterns, login behaviors, and anomalies across both blockchain and traditional environments. These automated systems process vast amounts of user activity data, automatically blocking suspicious transactions or forwarding them to human analysts for review.

The platform maintains that its AI-human hybrid methodology has proven effective in preventing fraud execution while preserving the integrity of legitimate user transactions. MEXC has also incorporated AI-driven tools for real-time detection of market manipulation schemes, including wash trading, spoofing, and pump-and-dump operations.

Despite these technological advances, MEXC acknowledges ongoing challenges with user confusion and misinformation surrounding its risk control protocols. The exchange reports that fraud syndicates have responded to account restrictions by launching disinformation campaigns designed to undermine user confidence and misrepresent the purpose of security measures.

To address these concerns, MEXC plans to launch a comprehensive global security education initiative in August. The program will feature real-world case studies, simplified explanations of fraud detection systems, and best practices for secure trading.

Jin further commented on the platform’s progress: “The gains we’ve made in Q2 are the result of early intervention, regional specialization, and smarter tools. But education remains key — we want users to understand not just what happens when an account is flagged, but why.”

MEXC’s comprehensive security strategy demonstrates a forward-thinking approach during a period when fraud remains a primary concern across the Web3 ecosystem.

Market Implications

The reported improvement in fraud detection may face scrutiny given the negative sentiment surrounding exchange security practices. Enhanced security measures, while protective, could potentially impact user experience and platform accessibility in the near term.