Crypto exchange MEXC has raised alarm bells after revealing a dramatic rise in trading fraud on its platform, with a 200% year-over-year increase in detected fraudulent activity. The findings, released on Friday, May 30, underscore the rising sophistication of crypto scams despite ongoing efforts to tighten platform security.
In Q1 2025 alone, MEXC identified 80,057 fraudulent trading attempts, nearly double the number recorded during the same period last year. These included classic forms of market abuse such as wash trading, bot manipulation, and coordinated pump-and-dump strategies all executed by over 3,000 organized fraud syndicates globally.
India and Indonesia Dominate Fraud Rankings
MEXC’s report points to India as the top source of fraudulent activity, with nearly 27,000 flagged accounts, representing a 17% year-over-year rise. Indonesia followed with 5,603 flagged accounts, marking a staggering 1,303% increase from Q1 2024.
The surge highlights the vulnerabilities in rapidly growing crypto markets where regulatory frameworks are still evolving and new retail investors are joining the ecosystem at scale.
In addition to Asia, the Commonwealth of Independent States (CIS) a bloc of former Soviet Union countries also saw a 245% increase in flagged accounts, totaling 6,404.
Financial Illiteracy and Influencer Fraud Driving the Trend
According to Tracy Jin, COO of MEXC, the root cause of this fraud explosion appears to be low financial literacy, particularly in emerging markets. Many of the fraud schemes involve social engineering tactics, with scammers impersonating financial influencers or mentors in “educational” trading groups.
“We’ve observed a growing number of so-called ‘educational’ trading groups that appear to be coordinated efforts to mislead users,” Jin said. “This trend highlights the importance of user education and proactive protection, especially for younger investors who may be more susceptible to persuasive but harmful narratives.”
Fraudsters often manipulate token prices with fake trading volumes and then offload positions onto unsuspecting investors a tactic that MEXC described as turning users into “exit liquidity.”
A Growing Global Problem
MEXC’s findings align with broader trends in the industry. A recent FBI report tied over $9 billion in crypto fraud losses in 2024 to scams such as “pig butchering,” where victims are emotionally manipulated over time before being defrauded. Many of these scams also rely on a lack of market knowledge and over-reliance on social platforms for financial advice.
Education as the First Line of Defense
MEXC stressed that technological defenses alone are not enough to combat evolving fraud tactics. The exchange is rolling out several educational initiatives, including interactive courses, scam awareness campaigns, and region-specific outreach to empower users with the tools to identify and avoid deceptive practices.
“The best defense is knowledge,” MEXC emphasized in its report.
As crypto adoption accelerates worldwide, especially in developing markets, the need for financial education becomes more urgent than ever. MEXC’s latest report is a stark reminder that while the infrastructure of crypto may be getting more advanced, so are the scams. Platforms, regulators, and communities must work together to ensure new users are equipped to navigate the space safely or risk falling victim to a new wave of digital deception.
