David Edwards
Cryptocurrency exchange MEXC has unveiled a $100 million user protection fund designed to safeguard its customers against platform breaches, technical failures, and critical security threats. The fund aims to provide immediate financial relief to affected users in the event of major incidents compromising MEXC’s infrastructure.
According to MEXC, the protection fund will cover cases of direct system compromise, significant vulnerabilities, or targeted hacking campaigns. The exchange has publicly disclosed wallet addresses linked to the fund, allowing users to independently verify balances and monitor activity. In addition, MEXC has launched a dedicated web portal offering detailed information on the fund’s structure, eligibility criteria, and active compensation cases.
“This isn’t just about promises, it’s about accountability and delivering visible safeguards when they matter most,” stated Tracy Jin, Chief Operating Officer at MEXC.
Unlike conventional insurance models that often involve protracted claims processes, MEXC’s fund is engineered for rapid deployment. Once an incident is confirmed, resources can be promptly allocated to eligible users. The platform’s internal risk control, compliance, and security teams review and approve compensation decisions, followed by manual eligibility assessments to determine payouts based on the scale of each loss.
Currently, fund management remains in-house. However, MEXC disclosed that it is exploring collaborations with third-party auditing and risk control firms to bolster transparency and independent oversight.
The $100 million fund represents approximately 2.5% of MEXC’s daily trading volume, with CoinMarketCap data indicating the exchange processed $3.98 billion in spot trading volume over the past 24 hours.
MEXC’s move comes at a time when the broader cryptocurrency sector faces heightened security risks. According to a recent report from blockchain security firm PeckShield, hackers stole more than $1.6 billion in digital assets during Q1 2025. Notably, over $1.5 billion of that sum was attributed to a single attack on centralized exchange Bybit, allegedly perpetrated by North Korea’s Lazarus Group.
The new fund also follows MEXC’s recent internal data, which revealed a 200% surge in detected fraud cases during Q1, underscoring the increasing sophistication of cybercriminal activity targeting digital asset platforms.
