Shiba Inu (shib) 
MEXC Crypto Exchange Reports 200% Rise in Trading Fraud
Crypto security continues to advance, but so does the sophistication of crypto-related crimes. On May 30, MEXC, a prominent cryptocurrency exchange, reported a staggering 200% year-over-year increase in detected trading fraud on its platform. In Q1 2025 alone, the platform identified 80,057 fraudulent attempts, doubling the figures from the same quarter in 2024. These cases underscore the growing challenges within the crypto industry as more users enter the market.
Types of Fraud and Organized Syndicates
The fraudulent activities detected by MEXC include wash trading, market manipulation, and bot trading strategies. These schemes were orchestrated by over 3,000 separate fraud syndicates, all working to exploit market vulnerabilities and gain an unfair advantage. Such organized efforts highlight the increasing complexity of crypto fraud and the need for robust security measures.
India and Indonesia Lead in Crypto Fraud Cases
India has emerged as the leading hub for crypto fraud, with MEXC flagging nearly 27,000 accounts in Q1 2025—a 17% increase from Q1 2024. Indonesia ranked second, with 5,603 flagged accounts, marking an alarming 1,303% year-over-year surge. These statistics reflect the growing prevalence of fraud in regions experiencing rapid crypto adoption.
Regional Trends in Fraudulent Activity
MEXC also reported a significant rise in fraudulent accounts across the Commonwealth of Independent States (CIS), which includes several countries from the former Soviet Union. Fraudulent accounts in this region increased by 245%, totaling 6,404 flagged accounts in Q1 2025. Such trends indicate that crypto fraud is a global issue, affecting both emerging and established markets.
“The rise in fraud underscores the urgent need for user education and proactive measures to protect investors, especially in regions with low financial literacy.” – Tracy Jin, COO of MEXC
Financial Literacy and Social Engineering: Key Drivers of Fraud
According to MEXC, the surge in fraudulent activity is closely tied to a lack of financial literacy in emerging markets. Many new users entering the crypto space are more susceptible to social engineering attacks. Fraudsters often pose as influencers, presenting themselves as experts offering financial advice. In reality, they manipulate token prices and use unsuspecting traders as exit liquidity.
MEXC COO Tracy Jin expressed concern over the rise of so-called “educational” trading groups that, in truth, are coordinated schemes to mislead users. Jin emphasized the importance of educating younger investors, who may be more prone to falling for persuasive but harmful narratives.
MEXC’s Educational Initiatives to Combat Fraud
As part of its commitment to tackling crypto fraud, MEXC revealed plans for several educational initiatives aimed at improving financial literacy among its users. These initiatives are designed to empower traders with the knowledge they need to identify and avoid fraudulent schemes. While technical measures can help mitigate risks, user education remains the most effective tool in combating these challenges.
The report from MEXC serves as a stark reminder of the importance of vigilance and education in the crypto space. As adoption continues to grow worldwide, ensuring that users have the tools and knowledge to navigate the market safely is paramount.
