MEXC’s Liquidation of Market Manipulators
Cryptocurrency exchange MEXC announced the liquidation of a large-scale group of market manipulators involved in self-trading, spoofing, layering, and front-running.
Concern Over Institutional Presence
The exchange revealed that 44 users from Vietnam and 138 from CIS countries were stopped, with 168 Vietnamese accounts and over 1,500 CIS accounts frozen. MEXC’s investigation identified the troubling presence of large groups and institutional actors in these manipulations, noting a 60% increase in such coordinated malicious trading activities from January to February.
The announcement followed a Kaiko Research report indicating that increasing market manipulation incidents in decentralized finance (DeFi) discourage institutional investors, potentially attracting regulatory scrutiny.
MEXC explained that manipulators used institutional-level access, liquidity, infrastructure, and algorithmic strategies to execute large-scale schemes, introducing systemic risks. They observed accounts with daily trading volumes exceeding $20 million, causing volatility increases of up to 120%. These manipulative actions could have led to swift market distortions and mass liquidations if not caught in time.
In addition to suspending the involved accounts, MEXC plans to report its findings to relevant authorities. COO Tracy Jin warned that without proper synchronization between platforms and regulators, the industry could face new waves of market instability.
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