Michaela
Cryptocurrency exchange MEXC has uncovered and shut down a large-scale market manipulation scheme after an internal investigation. The probe revealed two coordinated groups engaging in abusive trading tactics, prompting swift action to liquidate their positions.
According to a press release on the MEXC blog, one of the two groups identified was operating in Vietnam and the other in the CIS region. Their activities included self-trading, spoofing, layering, front-running, and quote stuffing. Upon detection, MEXC halted their operations and froze the associated accounts.
MEXC has raised concerns over the involvement of large groups and institutional-level actors in market manipulation schemes. According to data published in a press release on the MEXC blog, coordinated malicious trading activities surged by 60% from January to February this year compared to the end of the previous year.
The report emphasized the increasing sophistication of these schemes, as entities with institutional-level access to liquidity, infrastructure, and advanced algorithmic strategies exploit the market on a larger scale, introducing new risks to the trading environment.
“We are recording the transformation of manipulations from the retail to the group and even quasi-institutional level, which carries systemic risks for both individual exchanges and the market infrastructure as a whole,” the MEXC analytical department stated.
Additionally, the exchange revealed that the accounts involved in the market manipulation activities had daily trading volumes exceeding $20 million. It noted that the algorithms used by these participants caused short-term disruptions in specific trading pairs, driving volatility up by as much as 120%. It also warned that if such activities go undetected, they could result in mass liquidations and rapid distortions in asset prices within minutes.
MEXC implemented a targeted rollback of suspicious transactions alongside the suspension of identified accounts to minimize the impact of the violations and uphold market integrity. The exchange stated that following its internal investigation, it intends to share its findings and analytical reports with relevant authorities and regulators.
“We see this case as an indicator of the next wave of threats to digital markets — organized, large-scale, technically equipped groups capable of coordinating actions on dozens of tokens and hundreds of accounts. Without proper synchronization between platforms and regulators, the industry will face a new round of market instability,” Tracy Jin, COO of MEXC, stated.
MEXC reassured users that their funds remain secure, emphasizing that its Proof of Reserves system and platform insurance fund are in place to cover risks associated with abnormal liquidations.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
