MEXC launches $100M user protection fund to cover platform breaches

Here's a revised version of the article, aiming for clarity, conciseness, and a more professional tone, while removing potentially promotional content and preserving the "" placeholder:

Crypto exchange MEXC has established a $100 million user protection fund to safeguard its users against significant platform breaches, technical failures, and other critical security threats.

The fund is designed to compensate users in the event of major security incidents, including infrastructure breaches, critical system vulnerabilities, or large-scale targeted attacks, the exchange informed Cointelegraph.

MEXC has published the wallet addresses associated with the fund on its website, enabling users to verify balances and monitor fund activity in real-time. A dedicated web portal will also provide details about the fund's structure, covered scenarios, and ongoing compensation cases.

According to the company, the fund will provide coverage in situations where MEXC systems are directly compromised or significantly affected by vulnerabilities.

“This isn’t just about promises; it’s about accountability and providing tangible safeguards when they are most needed,” stated Tracy Jin, MEXC’s chief operating officer.

MEXC’s $100 million user protection fund. Source: Etherscan

Related: MEXC detects 200% surge in fraud during Q1

Designed for Rapid Deployment

Unlike traditional insurance models, which often involve protracted claims processes, MEXC's fund is structured for rapid deployment, according to the exchange. Upon confirmation of an incident, resources can be immediately allocated to affected users.

A spokesperson told Cointelegraph that all compensation decisions are reviewed and approved by MEXC’s dedicated internal team, comprising members from the risk control, compliance, and security departments.

They added that following verification and review of an incident, affected users undergo a manual eligibility assessment. “Our internal team will gather all relevant information and determine the appropriate compensation based on the nature and extent of the loss,” the spokesperson explained.

Currently, fund management is handled internally. However, the exchange is exploring partnerships with reputable third-party auditing and risk control entities to enhance transparency and oversight in the future.

The fund represents approximately 2.5% of MEXC’s daily trading volume. Data from CoinMarketCap indicates the exchange recorded $3.98 billion in spot trading volume over the past day.

Related: $2.1B hacked in 2025: hackers exploit human behaviour

Crypto Market Affected by Hacks

The launch follows a series of prominent security breaches within the cryptocurrency industry.

Hackers stole over $1.6 billion in cryptocurrency during the first quarter of 2025, according to an April report from blockchain security firm PeckShield. The majority, exceeding $1.5 billion, was attributed to a single exploit targeting centralized exchange Bybit, allegedly perpetrated by North Korea’s Lazarus Group.