Mutsamudu, Comoros — September 16, 2026 — MEXC, a digital asset trading platform known for its zero-fee trading model, has published its security report for July–August 2026. According to the report, the exchange successfully intercepted all 215 reports involving risk-related funds during the two-month period, covering approximately 38.66 million USDT. The total balance of the platform's Futures Insurance Fund rose to 792 million USDT, while the reserve ratios for BTC, ETH, USDT, and USDC all remained above 100%.

The report arrives amid sustained security pressure across the industry. In July and August 2026, the crypto sector recorded 184 security incidents, with reported losses totaling approximately $535 million. Phishing and fraud incidents, together with endpoint and supply-chain security incidents, accounted for approximately 48% of the total. MEXC also observed that a growing number of attackers are using AI to auto-generate phishing content and help write malware, increasing the efficiency of their attacks. As attack methods become more diverse, promptly identifying and intercepting risk-related funds and strengthening cross-platform investigation have become increasingly important to reducing user losses. For users, the practical implication is that timely reporting is what triggers the interception and freezing work documented throughout the report.

All 215 Risk-Fund Reports Successfully Intercepted, Covering 38.66 Million USDT

In July and August, MEXC assisted with 215 reports involving externally stolen or fraud-related funds flowing into the platform. All 215 cases were successfully intercepted, covering 38,655,490 USDT. Of these cases, 42 involved assistance with judicial freezes, meaning those matters extended beyond platform-level intervention into formal legal channels. Compared with the previous reporting period, the number of successfully intercepted cases increased by approximately 2,971%, while the value of intercepted funds increased by approximately 12,646%.

In tracking and handling risk-related funds, MEXC shared suspicious addresses with major industry participants, assisted in identifying fund flows, and supported verification and freezing procedures under established joint-investigation and law-enforcement cooperation procedures.

Over 20,000 Risk-Related Accounts Identified and Restricted, With More Than 600,000 USDT in Misdirected Assets Returned

In account risk identification, MEXC identified and restricted 20,752 accounts associated with risk-related activities during the period, an increase of 118.03% from the previous reporting period. The platform identified 5,288 risk groups, up 20.35%. By region of origin, these groups were concentrated primarily in the Commonwealth of Independent States (1,803), Nigeria (1,099), and Indonesia (976).

For user asset recovery, MEXC processed 818 applications for the return of misdirected assets, returning the equivalent of 602,225 USDT, an increase of 75.31% from the previous reporting period.

Futures Insurance Fund Reaches 792 Million USDT, Strengthening Protection Against Negative Balance Risk

As of September 1, 2026, the total balance of the MEXC Futures Insurance Fund reached 791,696,422 USDT, an increase of 5.44% from the previous reporting period.

The Futures Insurance Fund covers negative balances that may arise during liquidation, providing a risk buffer during extreme market conditions and helping reduce the likelihood of auto-deleveraging (ADL), the mechanism by which profitable traders' positions may be automatically reduced to cover a liquidated position's losses when the fund cannot absorb them. When a liquidated position is closed at a price better than the bankruptcy price, the remaining funds are credited to the fund. Users can view the real-time balance on the MEXC Proof of Trust page.

Reserve Ratios for Four Major Assets Remain Above 100%, With BTC at Approximately 288%

According to the proof of reserves disclosed for the period, MEXC maintained reserve ratios above 100% for four major assets:

• Bitcoin (BTC): reserve ratio of approximately 288%, with total wallet assets of 12,312.75 BTC against 4,282.20 BTC in user assets
• Ethereum (ETH): reserve ratio of approximately 113%, with total wallet assets of 66,227.79 ETH
• USDT: reserve ratio of approximately 115%, with total wallet assets of approximately 1.940 billion USDT
• USDC: reserve ratio of approximately 114%, with total wallet assets of approximately 194.85 million USDC

The on-chain addresses corresponding to these reserve assets have been disclosed, allowing users to verify through the Merkle Tree whether their individual account balances were included in this proof of reserves. Ratios above 100% indicate that wallet holdings exceed the corresponding user balances, and the Merkle Tree mechanism lets individual users confirm their own balances directly rather than relying on the exchange's summary figures.

Guardian Fund Maintains Dual-Reserve Structure, With Expansion From $100 Million to $500 Million Planned

As an additional layer of user asset protection, the MEXC Guardian Fund maintains a dual-reserve structure of USDT and BTC: USDT provides immediate liquidity support, while BTC serves as a long-term reserve asset across market cycles. MEXC plans to expand the fund from $100 million to $500 million, continuing to strengthen user asset protection. Together with the bi-monthly reporting cadence referenced in the CEO statement below, the planned expansion gives users concrete benchmarks to track in future updates, with current holdings verifiable on-chain at the addresses listed here:

Guardian Fund wallet addresses:

• USDT: 0x469AfE803C54A36674C55231489Cf4b61da8c1bC
• BTC: 1MDVjZdX8QD212pT8Z8EMP7DuFQHKqN3mx

CEO Statement

MEXC CEO Vugar Usi said, "Trust is the true reserve currency of this industry. Protecting user assets means moving decisively the moment risk emerges, while giving users something they can verify for themselves, not just our word for it. We will continue to strengthen our ability to identify and intercept risk-related funds, deepen cooperation across platforms and with law enforcement, and help affected users recover their losses wherever possible. Our bi-monthly security reports are part of that commitment, allowing our security performance to be measured and tracked over time."

About MEXC

Founded in 2018, MEXC is a global multi-asset trading platform built as a zero-fee gateway to digital and traditional assets. Serving users across more than 170 markets, the platform provides access to crypto, stocks, tokenized assets, derivatives, and a growing range of TradFi-linked opportunities through one account and one gateway. With zero trading fees, deep liquidity, broad asset coverage, and a high-performance trading experience, MEXC targets retail users seeking earlier discovery, faster execution, and fewer barriers to trading. As crypto and traditional finance continue to converge, the company states it is committed to making global opportunities more accessible.

Source: Chainwire