Statement on Measures Against Abnormal Futures Trading Activities in CIS Region
At MEXC, we are committed to maintaining a fair and transparent trading environment. Recently, our risk management team detected and took swift action against significant market manipulation activities in the Commonwealth of Independent States (CIS) region. After a thorough investigation, we have restricted access to accounts involved in severe violations that disrupted market integrity.
Scope of the Issue
Our investigation identified a coordinated group of 138 users operating over 1,500 accounts to engage in systematic market abuse. These activities posed a serious threat to market fairness and investor confidence.
Identified Violations
Our investigation uncovered multiple forms of market manipulation, including but not limited to:
- Self-Trading: Accounts engaging in transactions where the same entity acts as both buyer and seller, or related accounts trading with each other as counterparties. Indicators, but are not limited to, included accounts sharing funding sources, IP addresses, and synchronized trading patterns.
- Spoofing: Frequent placement and cancellation of orders within the same day, deliberately misleading other market participants and affecting price movements.
- Layering: Multiple instances of large-volume order placement followed by cancellations, designed to create false impressions of market depth and manipulate prices.
- Disruptive Algorithmic Trading: Use of programmatic trading methods that threaten system stability and normal market operations.
- Market Manipulation: Coordinated efforts to artificially influence asset prices or trading volumes through deceptive practices, including price inflation, suppression, and misleading order book activity, ultimately distorting fair market conditions.
For detailed information on our risk management protocols and enforcement measures, please refer to this article.
Remedial Actions Taken
To safeguard market integrity, we have implemented the following measures:
- Restricted access to all identified accounts
- Completed verification of violations
- Determined appropriate rollback timelines based on transaction data
- Implemented necessary transaction rollbacks
- Initiated evaluation of account restriction periods
Our Commitment to Market Integrity
MEXC strongly condemns activities that undermine market fairness and harm the interests of other users. We maintain a strict risk control system to identify and address violations according to established protocols. We categorically reject any suggestion of arbitrary freezing of user assets.
Asset Security Assurance
All user assets remain 100% secure. We maintain a transparent Proof of Reserves system to uphold security and accountability. For more information on our Proof of Reserve, please refer to this page. Users with concerns about risk control measures are encouraged to contact our Customer Service for verification.
Conclusion
MEXC remains firmly committed to maintaining market fairness and will not tolerate any trading behaviors that violate regulations or harm the interests of our user community. We continue to uphold principles of fairness and transparency while ensuring the integrity of our platform.