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An anonymous account on X posted a viral 10-part thread on October 31 accusing cryptocurrency exchange MEXC of freezing more than $10 million in user funds, manipulating token listings, and covering up alleged sexual misconduct among executives—explosive claims that remain unverified but have prompted one MEXC executive to apologize for operational failures.
The allegations, posted by @Mystral_777 and accompanied by screenshots and alleged leaked videos, have sparked intense debate on crypto Twitter about exchange accountability, though the identity of the accuser, their connection to MEXC, and the authenticity of much of their evidence remain unclear.
According to Mystral, several crypto projects, including CateCoin, were allegedly charged more than $60,000 in listing fees, only to face additional payment demands before approval. When some refused, their tokens were reportedly never launched.
The whistleblower also alleged that MEXC froze over $10 million in customer withdrawals, later closing support tickets without explanation — a central claim fueling the MEXC controversy now dominating online discourse.
Dozens of traders have come forward with similar stories, amplifying the MEXC controversy. User @Tradecelb claimed to have lost $18,500 USDT, while another user, @nitwitkook, said MEXC froze $14,000 of his assets and only returned a portion after public backlash.
A third user on Reddit alleged that $30,000 in USDT and ETH were drained via internal MEXC wallets, claiming there was no two-factor authentication and that support channels went silent.
Mystral also accused MEXC of trading against its own users, opening short positions before orchestrated liquidation spikes on low-cap tokens. Several accounts backed this claim, alleging the exchange manipulates spot and futures markets to its advantage.
One viral post in the thread read: “If you lose money, they keep it. If you win big, they lock your funds and accuse you of fraud.”
According to Mystral, fake engagement also plays a role in the manipulation. The account shared screenshots alleging that 40–50% of MEXC’s online engagement is inflated using bots. These claims have drawn attention from major influencers and watchdogs, deepening the MEXC controversy.
In one of the most damaging elements of the MEXC controversy, Mystral published messages from a supposed whistleblower who claimed to have discovered “compromising videos” involving senior executives, including Cecilia Hsueh, an MEXC executive.
The posts referenced alleged “hush payments” and shared a video purportedly connected to the claims. However, multiple users later said the clip originated from a separate adult account over a year ago — leaving the authenticity of these allegations unclear.
High-profile on-chain investigator @zachxbt also entered the debate, questioning the company’s ownership structure:
“Why does MEXC hide its beneficial owner from the public?” he asked, referring to an alleged “shadow owner” named Tony, reportedly behind layers of offshore entities.
The situation has prompted renewed calls for exchange accountability and regulatory oversight within the crypto industry — a point increasingly raised by policy makers watching the MEXC controversy unfold.
Roughly one hour after the exposé gained viral traction, MEXC executive Cecilia Hsueh responded on X, admitting to operational failures in one case of frozen funds.
“We f**ked up. We apologize to @TheWhiteWhaleV2, and his money is already released,” she wrote.
Hsueh acknowledged communication failures and said:
“Since I joined MEXC two months ago, I’ve been fighting behind the scenes to get MEXC to change. We grew really fast… but our risk, operations, and PR teams have not kept up.”
She insisted the exchange’s financials remain stable:
“There’s a difference between risk control disputes and insolvency. MEXC’s financials are solid. The issue is operational.”
Despite the apology, critics remained unconvinced.
Influencer CryptoVikings responded, “If it took this much for an influencer to get funds back, what hope does a regular user have?”
Hsueh did not comment on the sexual misconduct claims or the alleged fake engagement tactics, leaving key elements of the MEXC controversy unresolved.
Following Mystral’s thread, trader @maxleebtc revealed that $3.3 million USDT of his funds had been frozen for 20 days, with repeated “Withdrawal Failed” messages. Support reportedly cited “abnormal profit” as the reason.
Screenshots showed MEXC staff allegedly telling him the funds were “crawled back” 
His trading performance. Max claimed that responses have since been automated or dismissive.
With growing social media pressure, policy makers and investors are demanding transparency, user protection, and independent audits of major exchanges. Analysts say the MEXC controversy underscores broader concerns about self-regulation in crypto markets, which often leave users with little recourse when disputes arise.
For now, MEXC has not issued a formal statement addressing the full range of allegations. The MEXC controversy continues to unfold, serving as a stark reminder of how trust, accountability, and clear governance remain vital for the future of digital finance.
