MEXC reveals 200% spike in crypto fraud, India, Indonesia lead

MEXC crypto exchange revealed that detected trading fraud on the platform rose 200% last year, with India and Indonesia leading.

Crypto security is becoming increasingly sophisticated, but so is crypto crime. On Friday, May 30, crypto exchange MEXC reported that detected fraud on its platform rose 200% year over year. The platform identified 80,057 fraud attempts in Q1 2025, double the number from the same quarter a year earlier.

The identified cases include wash trading, market manipulation, and bot trading strategies. These were carried out by over 3,000 separate fraud syndicates, each coordinating to gain an unfair advantage in the market.

India emerged as the primary hub of crypto fraud, with MEXC flagging nearly 27,000 accounts, up 17% from Q1 2024. Indonesia ranked second with 5,603 flagged accounts, a figure that surged by 1,303% year over year.

Distribution of fraud across major countries and regions | Source: MEXC

There was also a 245% increase in fraudulent accounts across the Commonwealth of Independent States, which includes several countries of the former Soviet Union. MEXC identified 6,404 fraudulent accounts from this region.

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Financial literacy, influencers behind crypto fraud: MEXC

According to MEXC, the surge in fraud is likely tied to a lack of financial literacy in emerging markets, where many new users are entering the crypto space. This makes them more vulnerable to social engineering attacks, MEXC COO Tracy Jin explained.

Fraudsters often pose as influencers and present themselves as offering valuable financial advice. In reality, these groups manipulate token prices and use unsuspecting traders as exit liquidity.

“We’ve observed a growing number of so-called ‘educational’ trading groups that appear to be coordinated efforts to mislead users. 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,” Tracy Jin, MEXC.

MEXC noted that there is little that can be done to stop these kinds of attacks besides educating users and revealed plans for several educational initiatives to tackle the issue.

Read more: US government sanctions Philippines firm over massive crypto scam infrastructure

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