Crypto Exchange MEXC Registers 12% Drop in Syndicate Fraud: Data

Leading cryptocurrency exchange MEXC has reported a 12% quarter-over-quarter decline in coordinated and syndicated-related fraud during Q2 of 2025, following an increase of coordinated attacks reported earlier in the year.

MEXC crypto exchange releases fraud report: Key takeaways

According to the platform’s Q2 Risk Control Summary released today by MEXC, the reduction in platform fraud attempts is a product of its AI-driven fraud detection systems and recent focus on addressing regional vulnerabilities through educational initiatives and setting up regional response teams.

In Q2, over 70,000 fraud attempts linked to over 8,500 organized criminal groups were blocked by the platform.

Tracy Jin, COO of MEXC, highlights that the platform is evolving its fraud detection approach as fraud tactics and networks continue to evolve.

“The gains we’ve made in Q2 are the result of early intervention, regional specialization, and smarter tools. But education remains key — we want users to understand not just what happens when an account is flagged, but why.

She also stressed that the segment should treat risk control as a protection, not as punishment.

Various regions, various trends

South Asia, which was a major hotbed for syndicate activities in Q1, showed the most substantial improvement, according to the report. The region saw a 41% decline in fraud-related activity due to faster detection protocols, the activity of regional response teams and education initiatives designed to help users spot and avoid scams.

Southeast Asia, however, remains a region of concern, with fraud attempts rising slightly by 11% QoQ, which, however, represents a sharp downturn from the 1,300% recorded in Q1. Indonesia led the region’s fraudulent activity, accounting for 73% of Southeast Asia’s total, with a further 18% increase recorded from last quarter’s results.

The CIS region recorded the largest increase in detected fraud over the quarter, with an 83% increase which, although still high, is down from the 200%+ levels seen in Q1.

AI-driven detection and real-time risk control protocols employed by MEXC

At the heart of MEXC’s success in reducing fraudulent activities on its platform is a growing suite of AI-powered tools that analyze millions of on-chain and off-chain data points, including login patterns, trading behavior and network activity for real-time fraud detection.

MEXC also revealed that it expanded its use of AI to monitor market manipulation schemes such as spoofing, wash trading and pump-and-dump operations.

While technical infrastructure and defense systems are improving, MEXC says misinformation remains a key challenge to be addressed. This is particularly important for new users to understand why accounts are flagged or transactions are blocked.

To combat this, MEXC plans to launch a global trading security and risk education campaign in August, featuring real-world case studies, explainers on how fraud detection tools work and best practices for secure trading. The initiative aims to close the information gap and give users a clear view of how MEXC’s risk control systems operate.

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