- MEXC increased 200% by reporting 80,057 fraud cases in the first quarter of 2025.
- India reported 27,000 fraud accounts, up 17% from last year.
- In Indonesia, the scam was 1,303%, reaching 5,603 people.
The adoption of cryptocurrency is expanding in the emerging market, so the risks related to financial fraud are the same. On Friday, May 30, Global Crypto Exchange MEXC showed a sharp increase in fraud detected on the platform last year.
The number of cases reported rose to 80,057 in the first quarter of 2025 and doubled the same period in 2024.
This increase is because more and more adjusted fraudish syndicates exploit the gap between financial literacy and especially in areas where encryption participation increases.
India has emerged as the biggest source of fraud, and occupied more than one -third of all cases. In the first quarter, MEXC confirmed almost 27,000 accounts, and the number of users with the flags increased by 17% compared to the previous year.
Indonesia was the second largest contributor, and the number of fraud accounts increased by more than 1,300% year -on -year, totaling 5,603.
Market manipulation and washing transactions dominate tactics
MEXC’s fraudulent incidents include a variety of illegal activities, including market manipulation, bot driving and washing transactions.
More than 3,000 separate scam syndicates have been found to be operated in various regions, targeting low cap and midcap tokens.
The synthkate arranges the bot and adjusts the transaction, artificially expanding the volume and the price, misleading the general investor.
In particular, the same entity plays a role in both buyers and sellers, giving the impression of false demand.
This tactic is difficult to detect on the distributed exchanges, and it is increasingly adapting to bypass detection algorithms on the centralized platform.
Former Soviet Republic Group CIS (Commonwealth of Independent States) also increased the report account.
MEXC confirmed 6,404 fraud accounts in the region in the first quarter of 2025 and reported that it increased 245% compared to the previous year.
This surge emphasizes the geographical spreads of sophisticated encryption frauds due to accessibility to trading platforms and limited implementation of jurisdiction.
Social media influential people supply fuel to the fake trading system.
MEXC’s increase in encryption fraud occurred not only in technology but also through social media.
According to the company, many fraudulent actors often present themselves as an influential person or trading educator operated through the telegram group, discord server or Youtube channel.
The so -called community is a fraudulent ring that promotes the pump and dump strategy, and often does not know that retail investors have significant losses.
Tracy Jin, the chief operating officer of exchange, said that these groups evolved beyond their own scams. Instead, it affects trust and transaction behavior by using convincing educational content.
As an expert, a scammer can effectively form market sentiment and time by using true retail investment as liquidity.
MEXC also stressed that young investors are particularly vulnerable to those who enter the market where financial education is limited.
This exchange has come from areas with low financial literacy, which suggests a direct connection between education and fraud.
MEXC starts local education initiatives.
MEXC has announced a series of educational campaigns to protect users from deceptive practices in response to an increasing threat.
Although technology alone admits that it cannot solve the problem, the platform plans to invest in a perception program that detects fake trading signals, avoids pump and dump traps, and identifies social engineering tactics.
Such initiatives are adjusted to the fastest increasing market, including parts of India, Indonesia and Eastern Europe.
The company aims to improve digital financial knowledge between retailers in cooperation with local universities, fintech groups and regulators.
MEXC’s report emphasizes wider industry tasks. As encryption becomes more accessible, it becomes more difficult to protect the user from abuse.
The latest fraudulent statistics of this platform are warned for exchange, regulators and users, and strengthen the need for strong protection, transparency and continuous investor education.
