MEXC flags 200% spike in crypto fraud: India, Indonesia lead with over 30,000 accounts

• MEXC
  reports
  80,057
  fraud
  cases
  in
  Q1
  2025,
  a
  200%
  YoY
  increase.
• India
  flagged
  27,000
  fraudulent
  accounts,
  up
  17%
  from
  last
  year.
• Indonesia
  saw
  1,303%
  surge
  in
  fraud
  cases,
  reaching
  5,603.

As
cryptocurrency
adoption
widens
across
emerging
markets,
so
do
the
risks
tied
to
financial
fraud.
On
Friday,
May
30,
global
crypto
exchange
MEXC
revealed
a
sharp
200%
increase
in
detected
fraud
on
its
platform
over
the
past
year.

The
number
of
flagged
cases
climbed
to
80,057
in
the
first
quarter
of
2025
alone,
double
the
figures
from
the
same
period
in
2024.

This
rise
is
being
attributed
to
a
growing
number
of
coordinated
fraud
syndicates
exploiting
gaps
in
financial
literacy,
particularly
in
regions
with
surging
crypto
participation.

India
has
emerged
as
the
largest
source
of
fraudulent
activity,
accounting
for
over
a
third
of
all
flagged
cases.
With
nearly
27,000
accounts
identified
by
MEXC
in
Q1,
the
country
saw
a
17%
increase
in
flagged
users
compared
to
the
previous
year.

Indonesia
followed
as
the
second-largest
contributor,
where
the
number
of
fraudulent
accounts
spiked
by
more
than
1,300%
year
over
year,
reaching
5,603
in
total.

Market
manipulation
and
wash
trading
dominate
tactics

The
fraud
cases
uncovered
by
MEXC
involve
a
range
of
illicit
activities,
including
market
manipulation,
bot-driven
trading,
and
wash
trading.

Over
3,000
distinct
fraud
syndicates
were
found
to
be
operating
across
various
regions,
targeting
both
low-cap
and
mid-cap
tokens.

These
syndicates
deploy
bots
and
coordinate
trades
to
artificially
inflate
volumes
and
prices,
thereby
misleading
ordinary
investors.

In
particular,
wash
trading
—
where
the
same
entity
acts
as
both
buyer
and
seller
to
create
a
false
impression
of
demand
—
continues
to
be
widely
used.

This
tactic
remains
difficult
to
detect
across
decentralised
exchanges
and
is
increasingly
being
adapted
to
bypass
detection
algorithms
on
centralised
platforms
as
well.

The
Commonwealth
of
Independent
States
(CIS),
a
group
of
former
Soviet
republics,
also
saw
a
sharp
increase
in
flagged
accounts.

MEXC
reported
identifying
6,404
fraudulent
accounts
from
the
region
in
Q1
2025,
up
245%
compared
to
the
previous
year.

This
surge
highlights
the
geographical
spread
of
sophisticated
crypto
fraud,
driven
by
growing
access
to
trading
platforms
and
limited
enforcement
across
jurisdictions.

Social
media
influencers
fuelling
fake
trading
schemes

MEXC
has
attributed
the
rise
in
crypto
fraud
not
only
to
technology
but
also
to
manipulation
through
social
media.

According
to
the
company,
many
fraudulent
actors
present
themselves
as
influencers
or
trading
educators,
often
operating
through
Telegram
groups,
Discord
servers,
or
YouTube
channels.

These
so-called
communities
are
coordinated
fraud
rings
promoting
pump-and-dump
strategies,
often
leaving
unaware
retail
investors
with
significant
losses.

The
exchange’s
Chief
Operating
Officer,
Tracy
Jin,
noted
that
these
groups
have
evolved
beyond
direct
scams.
Instead,
they
use
persuasive
educational
content
to
gain
trust
and
influence
trading
behaviour.

By
posing
as
experts,
fraudsters
are
able
to
shape
market
sentiment
and
time
their
exits
effectively,
using
genuine
retail
investment
as
liquidity.

MEXC
also
stressed
that
younger
investors
are
particularly
vulnerable,
especially
those
entering
the
market
with
limited
financial
education.

The
exchange
says
the
majority
of
the
flagged
users
were
from
regions
where
financial
literacy
remains
low,
suggesting
a
direct
link
between
education
and
susceptibility
to
fraud.

MEXC
to
launch
regional
education
initiatives

In
response
to
the
rising
threat,
MEXC
has
announced
a
series
of
educational
campaigns
aimed
at
protecting
users
from
deceptive
practices.

While
it
acknowledged
that
technology
alone
cannot
solve
the
issue,
the
platform
plans
to
invest
in
awareness
programmes
that
explain
how
to
detect
fake
trading
signals,
avoid
pump-and-dump
traps,
and
identify
social
engineering
tactics.

These
initiatives
will
be
tailored
to
markets
where
fraud
is
growing
fastest,
including
India,
Indonesia,
and
parts
of
Eastern
Europe.

The
company
aims
to
collaborate
with
local
universities,
fintech
groups,
and
regulators
to
enhance
digital
finance
knowledge
among
retail
traders.

MEXC’s
report
underscores
a
broader
industry
challenge:
as
crypto
becomes
more
accessible,
protecting
users
from
abuse
becomes
more
difficult.

The
platform’s
latest
fraud
statistics
serve
as
a
warning
for
exchanges,
regulators,
and
users
alike,
reinforcing
the
need
for
stronger
safeguards,
transparency,
and
ongoing
investor
education.