Key Notes
- About $5.5 billion had been withdrawn from MEXC within a short time.
- Users are now facing delays in withdrawals and suspect that the firm is in the middle of undisclosed insolvency.
- MEXC has denied the claims and promised to update its Merkle tree data later, allowing users to verify the reserves directly.
There are suspicions that cryptocurrency exchange MEXC is facing insolvency, especially after massive withdrawals were noticed on the platform. Users reportedly experienced delays when attempting to withdraw their funds. This was after about $5.5 billion had been taken out of MEXC within a short time.
MEXC Denies Insolvency Rumors
Recently, MEXC users experienced some difficulties withdrawing their funds from the platform. Before then, a massive withdrawal of funds from the exchange led MEXC to record outflows of $5.5 billion. This situation has led market analysts to suspect that the crypto exchange may be struggling with insolvency issues.
MEXC described users’ claims of insolvency as “false and misleading” while emphasizing the crypto exchange’s “strong financial health.”
It released a public statement denying the ongoing insolvency rumors, stating that it will update its Merkle tree data later to allow users to verify the reserves directly. Users were assured of the safety of their assets.
MEXC claimed that all assets are “fully backed” and supported by Proof-of-Reserves (PoR) showing over 100% coverage. Blockchain analytics platform CryptoQuant data does not support the exchange’s claims. Apparently, the Bitcoin withdrawals on MEXC have surged to record highs. As it stands, analysts are suspicious of the crypto exchange’s transparency.
Consequently, financial transparency analyst Shanaka Anslem has requested that the firm provide verifiable on-chain balances, disclose evident liabilities, and undergo external verification.
BTC, ETH, and SOL Impacted by Massive Outflows
It appears that MEXC is not the only exchange caught in these massive outflows, but it is the largest in the group. Over the last 24 hours, Gemini and OKX have also registered some notable net outflows per Coinglass data.
Moreso, Bitcoin (BTC), Solana (SOL), and Ethereum (ETH) made up a major percentage of the assets that were moved.
Popular crypto analyst Ted Pillows confirmed that several treasury firms have resumed selling their Ethereum holdings, a signal of renewed weakness in the market. On October 30, spot Ethereum ETFs recorded $184 million in outflows. Only BlackRock’s iShares Ethereum Trust ETF (ETHA) saw $120 million in outflows.
Unfortunately, this puts the ETH price at risk unless it regains strength above $4,000. At press time, Ethereum traded at $3,868.74, with a 0.87% increase within the last 24 hours per CoinMarketCap data.
📢Clarification on Rumors Regarding MEXC’s Financial Status
Recent online discussions have circulated unverified rumors regarding MEXC’s financial status. We would like to clearly state that these claims are false and misleading.
MEXC remains in strong financial health. All… pic.twitter.com/o5M35x7Qos
— MEXC (@MEXC_Official) November 1, 2025
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
