MEXC Reports 751M USDT Futures Insurance Fund And Strengthened Security Measures In Latest Transparency Update
In Brief
MEXC reports a 751M USDT insurance fund, over 100% asset reserves, and expanded security measures to strengthen platform transparency.
Cryptocurrency exchange MEXC published its May–June bimonthly security report, highlighting updates on its insurance fund, proof-of-reserves data, and risk management measures. The report shows that the platform’s Futures Insurance Fund exceeded 750 million USDT as of June 29, representing a 34% increase compared with the previous reporting period. Reserve verification data also indicated that coverage ratios for BTC, ETH, USDT, and USDC remained above 100%, with Bitcoin reserves reaching a ratio of 269.35%.
The report was released amid continued security challenges across the digital asset industry. Data from blockchain security monitoring firms showed that 142 separate security incidents occurred during May and June, resulting in approximately US$194 million in confirmed losses. Decentralized finance (DeFi) incidents represented 55% of reported cases, accounting for around US$150 million in losses, while cross-chain bridges, private key management, and user-side security vulnerabilities remained among the main areas of concern.
Against this backdrop, MEXC emphasized the importance of reserve transparency and risk-management mechanisms as key components of user protection. The company stated that its Futures Insurance Fund serves as a financial buffer designed to help manage unexpected liquidation risks during periods of market volatility.
Enhanced Reserve Transparency and Risk Protection Measures
According to the report, the MEXC Futures Insurance Fund reached 751 million USDT by the end of June 29, reflecting a net increase of more than 191 million USDT from the previous disclosure. The fund is designed to reduce the impact of liquidation-related losses and support orderly operations across the platform’s derivatives markets.
MEXC said its reserve balances and solvency information remain accessible through its public Proof of Trust interface, allowing users to monitor reserve levels. The platform also continues to operate a Proof of Reserves system based on on-chain verification and Merkle Tree technology, enabling independent checks of asset backing.
As of the reporting date, MEXC reported the following reserve levels: BTC reserves stood at 269.35%, with 12,656.63 BTC held in wallets compared with 4,698.90 BTC in user assets. ETH reserves reached 118.14%, while USDT and USDC reserves stood at 113.95% and 125.41%, respectively. The company stated that these figures can be verified through public blockchain wallet data and its reserve verification framework.
The MEXC Guardian Fund continues to operate under a dual-reserve structure consisting of USDT and BTC allocations. The company said underlying crypto assets remain segregated, traceable through on-chain addresses, and available for public verification.
Strengthening Security Across the Trading Lifecycle
Beyond reserve management, MEXC reported expanded efforts in account monitoring, fraud prevention, and asset recovery during the May–June period. The company noted that phishing attacks and endpoint-related security incidents contributed to approximately US$28.59 million in industry losses, increasing the need for stronger account protection and investigative capabilities.
During the reporting period, MEXC’s financial intelligence unit identified and restricted 9,518 accounts associated with suspected illicit activity, disrupting 4,394 fraudulent networks. The company reported that the largest number of blocked networks were linked to the Commonwealth of Independent States (CIS) region, with 2,096 cases, followed by Indonesia with 1,229 cases.
MEXC also expanded cooperation with external authorities, processing 497 statutory investigation requests and supporting 53 judicial asset-freezing actions. In addition, the platform’s transaction monitoring systems identified seven high-risk inbound transfers involving suspected illicit funds and froze 303,277 USDT before those assets entered broader exchange liquidity flows.
The company further stated that it handled 812 individual asset recovery cases involving incorrect cross-chain deposits and misdirected transfers, recovering assets valued at 343,515 USDT. Each case underwent manual verification and blockchain-based forensic review, with compliance teams using cross-chain tracing methods to identify and return affected assets.
“True trust is not built on promises made before risks emerge, but on whether protection remains visible and verifiable when challenges arise,” said Vugar Usi, CEO of MEXC in a written statement. “With our Futures Insurance Fund surpassing 750 million USDT, together with publicly verifiable Proof of Reserves, we are reinforcing MEXC’s role as a trusted global gateway where security and trust always come first, ensuring every user’s assets are safeguarded,” he added.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
