MEXC Blocks 70,000 Fraud Attempts in Q2, Reports 12% drop in Syndicate Attacks

Cryptocurrency exchange MEXC has released a new report showing a 12% quarter-over-quarter decline in fraud attempts stemming from organized fraud syndicates — a notable decrease following a sharp spike reported by the exchange in Q1 2025. According to the platform’s latest Q2 Risk Control Summary, 70621 fraud attempts linked to 8,501 criminal groups were intercepted between April and June 2025. MEXC credits the progress in combating fraudulent activities on its platform to AI-led surveillance systems and region-specific response strategies, including localized response teams and user education. “As fraud networks evolve, so must our response. Risk control is not punishment; it’s protection. said Tracy Jin, COO of MEXC. According to the report, South Asia saw the largest decline in illicit activity, marking a 41% drop, which was attributed to faster detection, rapid-response teams, and localized user education efforts. This follows a major concentration of syndicate-led fraud in the region in the previous report for Q1. South Asia remains a region of concern, with fraud attempts increasing by 11% QoQ. However, the region has seen a significant deceleration from the 1300% surge recorded in the previous quarter. Indonesia accounted for 73% of Southeast Asia’s fraud cases, posting an 18% rise, while Vietnam contributed 16% with a 35% increase. The CIS region, in contrast, recorded the highest relative increase among all regions at 83% though this represents a slower pace compared to the over 200% rise seen in Q1. AI-powered Risk Control Surveillance Gains Ground MEXC’s risk control framework leans heavily on advanced AI models capable of detecting anomalies in trading behaviour, login patterns, and outliers across both on-chain and off-chain environments. These surveillance systems analyse a large volume of user activities and automatically block suspicious activities or escalate them for human review. The platform reiterates that this AI-human hybrid approach has been key in reducing the success of fraud execution without negatively affecting legitimate user transactions. MEXC has now also integrated AI tools for real-time monitoring of market manipulation tactics like wash trading, spoofing, and pump-and-dump schemes. Countering Misinformation and Misunderstanding of the Risk Control Protocol Though risk control, surveillance, and fraud detection have improved, MEXC noted that user confusion and misinformation remain a persistent challenge. In some instances, fraud syndicates have launched retaliatory disinformation campaigns after thier accounts were restricted by the risk control systems, targeting user trust by distorting the purpose of the account restrictions. In Response, the platform announced it will roll out a global security education initiative in August. The campaign will include real-world case studies, simplified explainers on fraud detection models, and guidelines for secure trading. 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. Tracy Jin added further. MEXC’s approach to platform integrity reflects a proactive approach at a time when fraud in the Web 3 industry remains a top concern. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily