The crypto community has raised concerns about the insolvency of the MEXC exchange, as users have experienced delays when attempting to withdraw their funds. This occurred after approximately $5,5 billion in cryptocurrency was withdrawn from MEXC in a short period of time.
Representatives of the crypto exchange called all statements about insolvency «false and misleading,» while emphasizing the company’s «stable financial position.»
In a public statement, MEXC stated that it would later update its Merkle tree data so that every client could directly verify reserves. Users were assured of the safety of their assets. The MEXC team stated that all assets are «fully backed» and confirmed by Proof-of-Reserves (PoR), indicating greater than 100% coverage.
However, data from blockchain analytics platform CryptoQuant doesn’t support the exchange’s claims. Apparently, the volume of bitcoins being withdrawn from MEXC has reached a record high. Experts are currently suspicious of the cryptocurrency exchange’s transparency. Consequently, financial transparency analyst Shanaka Anslem has demanded that the company provide verifiable on-chain balances and undergo external audit.
MEXC appears to be not the only exchange experiencing such a massive outflow of funds, but it is the largest in this group. Over the past 24 hours, Gemini и OK A significant net outflow of funds was also recorded.