MEXC says it intercepted 38.66 million USDT in July-August risk cases

Security backdrop and intercepted funds

MEXC placed the update against what it described as a difficult industry backdrop in July and August. According to the report, the crypto sector saw 184 security incidents during the two-month period, with reported losses of about $535 million. The exchange said phishing and fraud, along with endpoint and supply-chain security incidents, accounted for roughly 48% of the total.

The company also pointed to a rise in attackers using AI tools to generate phishing material and assist with malware writing. In that environment, MEXC said fast identification of suspicious transfers and coordination across platforms have become more important in limiting user losses.

Within its own operations, the exchange said it handled 215 reports tied to externally stolen or fraud-related funds flowing onto the platform. It said every one of those reports was successfully intercepted, covering about 38.66 million USDT in total.

Account restrictions and recovery work

Beyond the intercepted fund reports, MEXC said it identified and restricted 20,752 accounts associated with risk-related activity in July and August, up 118.03% from the previous reporting period. It also said it identified 5,288 risk groups, a 20.35% increase.

By region of origin, the exchange said those groups were concentrated mainly in the Commonwealth of Independent States, with 1,803 groups, followed by Nigeria with 1,099 and Indonesia with 976.

MEXC also reported user asset recovery activity during the period. It said staff manually processed 818 applications involving misdirected assets and returned the equivalent of 602,225 USDT, which it said was 75.31% higher than in the previous reporting period.

Insurance fund nears 792 million USDT

As of Sept. 1, 2026, MEXC said the balance of its Futures Insurance Fund had reached 791,696,422 USDT, an increase of 5.44% from the prior reporting period. The company described the fund as a buffer for negative balances that can arise during liquidation in extreme market conditions.

According to the report, the fund is intended to reduce the likelihood of auto-deleveraging in futures trading. MEXC said that when a liquidated position is closed at a price better than the bankruptcy price, the remaining amount is added to the insurance fund.

Reserve ratios and the next disclosed checks

MEXC said its latest proof-of-reserves data showed reserve ratios above 100% for four major assets. It listed BTC at about 288%, based on 12,312.75 BTC in total wallet assets against 4,282.20 BTC in user assets. It reported ETH reserves at about 113%, USDT at about 115%, and USDC at about 114%.

The exchange said the on-chain addresses for those reserve assets have been disclosed and that users can verify inclusion of their balances through a Merkle Tree system. It also published guardian fund wallet addresses for USDT and BTC as part of the same disclosure.

The bi-monthly report sets out the figures MEXC says it will continue to track, including interceptions of risk-related funds, account restrictions, recovery requests, insurance fund balances and reserve ratios. The next confirmed step is the exchange's subsequent security reporting cycle, which will show whether those metrics continue to change from the July-August period.