MEXC Blocks $38.65M in Risk Funds, Insurance Fund Reaches $791.69M

MEXC announced it had blocked $38.65 million in funds related to 215 risk reports filed between July and August 2026. The futures insurance fund balance as of September 1 stood at $791.69 million, according to the exchange's security report published on September 16. The report detailed handling of funds linked to external thefts and fraud, with 42 cases supported by judicial freezing procedures.

Compared to the previous reporting period, blocked cases increased by approximately 2,971% while the amount blocked rose by about 12,646%. The report did not specify exact figures for the prior period. Additionally, MEXC restricted 27,520 accounts associated with risky activities and identified 5,288 risk groups, with 1,803 from the CIS region, 1,099 from Nigeria, and 976 from Indonesia.

Manual processing of refund requests for incorrectly deposited assets totaled 818 cases amounting to $602,225, a 75.31% increase from the previous period. The insurance fund grew by 5.44% from $750.85 million in May-June reports. MEXC explained that the fund helps prevent negative balances during forced liquidations and reduces the likelihood of automatic deleveraging (ADL) during extreme market conditions.

The exchange reported reserve ratios exceeding 100% for major assets: Bitcoin (BTC) at approximately 288%, Ethereum (ETH) at 113%, Tether (USDT) at 115%, and USDC at 114%. BTC holdings were reported at 12,312.75 BTC, with user assets totaling 4,282.20 BTC.

MEXC also noted the industry-wide security incidents during the same period totaled 184 cases with damages amounting to approximately $535 million (about 72.76 billion KRW), where phishing and fraud, along with endpoint and supply chain security breaches, accounted for nearly half of all incidents. The exchange highlighted an increase in AI-generated phishing content and malware as a growing threat.