Crypto exchange MEXC has launched a $100 million user protection fund designed to safeguard users against major platform breaches, technical failures, and critical security threats.
According to a statement shared with Cointelegraph, the fund is intended to compensate users in the event of serious incidents, such as infrastructure breaches, significant system vulnerabilities, or large-scale targeted attacks.
To ensure transparency, MEXC has made wallet addresses associated with the fund publicly available on its website, enabling users to verify balances and track fund activity in real time. The exchange has also introduced a dedicated web portal offering details on the fund’s structure, eligible scenarios, and active compensation cases.
The company emphasized that the fund will specifically cover incidents where MEXC’s systems are directly compromised or impacted by major 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.
Engineered for rapid deployment
Unlike traditional insurance models that involve lengthy claims procedures, MEXC’s $100 million protection fund is built for rapid deployment, the exchange told Cointelegraph. Once a security incident is confirmed, funds can be promptly allocated to affected users.
A spokesperson explained that compensation decisions are overseen by MEXC’s internal task force, which includes experts from the risk control, compliance, and security departments. Following verification of an incident, affected users undergo a manual eligibility assessment.
“Our internal team collects all relevant details and determines compensation based on the nature and severity of the loss,” the spokesperson said.
At present, the fund is managed internally. However, MEXC noted it is considering collaborations with established third-party auditing and risk control firms to strengthen transparency and oversight.
The fund represents roughly 2.5% of MEXC’s daily trading volume. According to data from CoinMarketCap, the exchange recorded $3.98 billion in spot trading volume over the past 24 hours.
Crypto Market Continues to Battle Wave of Hacks
The launch comes in response to a series of high-profile security breaches plaguing the crypto industry.
In the first quarter of 2025 alone, hackers stole more than $1.6 billion in digital assets, according to an April report by blockchain security firm PeckShield. Notably, over $1.5 billion of that total stemmed from a single exploit targeting centralized exchange Bybit, reportedly orchestrated by North Korea’s Lazarus Group.
