Crypto exchange MEXC has rolled out a $100 million user protection fund aimed at shielding its users from major platform breaches, technical failures or other serious security threats.
The fund is structured to compensate users in the event of major security incidents, including breaches of the platform’s infrastructure, critical system vulnerabilities or large-scale targeted hacks, the exchange told Cointelegraph.
MEXC has also published wallet addresses linked to the fund on its website, allowing users to verify balances and monitor fund activity in real-time. A dedicated web portal will also provide information about the fund’s structure, covered scenarios and ongoing compensation cases.
According to the company, the fund will offer coverage in cases where MEXC systems are directly compromised or affected by serious vulnerabilities.
“This isn’t just about promises, it’s about accountability and delivering visible safeguards when they matter most,” said Tracy Jin, MEXC’s chief operating officer.
Related: MEXC detects 200% surge in fraud during Q1
Unlike traditional insurance models, which often require lengthy claims processes, MEXC’s fund is designed for quick deployment, the exchange said. Once an incident is confirmed, the exchange can immediately allocate resources to affected users.
A spokesperson told Cointelegraph that all compensation decisions are reviewed and approved by MEXC’s “dedicated internal team,” which includes members from the risk control, compliance and security departments.
They added that once an incident is verified and reviewed, affected users will 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 said.
Currently, the fund management is handled in-house. However, the exchange said they are exploring partnerships with reputable third-party auditing and risk control entities to enhance transparency and oversight in the future.
The fund accounts for about 2.5% of MEXC’s daily trading volume. Data from CoinMarketCap shows the exchange had $3.98 billion in spot trading volume over the past day.
Related: $2.1B hacked in 2025: hackers exploit human behaviour
The launch follows a string of high-profile security breaches across the crypto industry.
Hackers made off with over $1.6 billion in crypto during the first quarter of 2025, according to an April report from blockchain security firm PeckShield. The majority, over $1.5 billion, was linked to a single exploit targeting centralized exchange Bybit, allegedly carried out by North Korea’s Lazarus Group.
Magazine: Elon Musk Dogecoin pump incoming? SOL tipped to hit $300 in 2025: Trade Secrets
By RUZIBIZA WESLEY, Sebastián Torres, Sonya Armaghanyan. Sonya Armaghanyan and Wesley Ruzibiza are artists from…
Perhaps it’s a bit ambitious to give Scott Morrow a report card for last season.…
Binance co-founder Changpeng “CZ” Zhao backed crypto license passporting across ASEAN, arguing that firms regulated…
"I'm looking back on my career in the enemy camp, this 30-year career in the…
AEA is the American Economics Association, and a new president is needed, here is the…
Creative writing is a challenge for many students, often because they can’t come up with…