Crypto Exchange Aims for Swift, Transparent Compensation in Security Breaches
Crypto exchange MEXC has announced the launch of a $100 million user protection fund, aiming to shield its customers from major platform breaches, hacks, and technical failures. The initiative comes as the crypto sector faces mounting concerns over security, with billions lost to cyberattacks in recent months.
Comprehensive Coverage with Real-Time Transparency
The fund is designed to compensate users in the event of large-scale security incidents, including infrastructure breaches, critical system vulnerabilities, and targeted attacks. In a bid to reinforce trust, MEXC has also published the wallet addresses associated with the fund on its official website, allowing users to independently verify balances and monitor fund activity in real time.
A dedicated web portal will offer detailed information about the fund’s structure, eligibility criteria, and updates on active compensation cases. According to the company, the fund currently represents around 2.5% of MEXC’s daily trading volume, with the platform recording $3.98 billion in spot trading in the past 24 hours, based on data from CoinMarketCap.
Swift Deployment and Internal Oversight
Unlike conventional insurance models that often involve prolonged claims procedures, MEXC’s fund is structured for rapid response. Once a security breach is verified, resources can be allocated immediately to affected users, the company stated.
“All compensation decisions are reviewed and approved by MEXC’s internal team, comprising members from the risk control, compliance, and security departments,” a company spokesperson confirmed. Users impacted by a verified incident will undergo a manual eligibility assessment, ensuring compensation is tailored to the specific nature and severity of the loss.
While the fund is currently managed internally, MEXC is exploring collaborations with third-party auditing and risk control firms to strengthen transparency and independent oversight in the near future.
Commitment to Accountability
Tracy Jin, Chief Operating Officer at MEXC, highlighted the company’s proactive stance on user protection. “This isn’t just about promises, it’s about accountability and delivering visible safeguards when they matter most,” Jin stated.
The exchange emphasised that the fund is not a symbolic gesture but a tangible commitment to protecting user interests. “We believe in putting users first, with tools that go beyond marketing and offer real security in uncertain times,” the spokesperson added.
Crypto Sector Grapples with Ongoing Hacks
MEXC’s announcement follows a turbulent period for the crypto industry, which has seen a wave of damaging hacks. In the first quarter of 2025 alone, cybercriminals stole over $1.6 billion in crypto assets, according to a report from blockchain security firm PeckShield.
Of that amount, more than $1.5 billion was linked to a single exploit targeting the centralised exchange Bybit, allegedly orchestrated by North Korea’s notorious Lazarus Group. The incident marked one of the most significant heists in the history of the crypto sector and has intensified scrutiny on centralised platforms.
In response to such threats, exchanges are increasingly under pressure to introduce robust safeguards and compensation mechanisms to retain user trust. With its $100 million protection fund, MEXC aims to position itself as a leader in platform security and customer care.
