MEXC reported 80,057 fraud cases in the first quarter of 2025, up 200% year-on-year. India has flagged 27,000 fraudulent accounts, up 17% from last year. Indonesia saw a 1,303% rise in fraud cases, reaching 5,603.
As cryptocurrency adoption expands across emerging markets, so does risks that have been linked to financial fraud. On Friday, May 30th, Global Crypto Exchange MEXC revealed a sharp rise in scams detected on the platform over the past year.
The number of flagged cases rose to 80,057 in the first quarter of 2025 alone, doubling the figure for the same period in 2024.
This rise is attributed to an increase in coordinated fraud syndicates that take advantage of financial literacy gaps, particularly in areas where encryption is surged.
India has emerged as the biggest source of fraud, accounting for more than a third of all flagged cases. With nearly 27,000 accounts identified by MEXC in the first quarter, the country saw a 17% increase in flagged users compared to the previous year.
Indonesia continues as the second largest contributor, with the number of fraudulent accounts increasing by more than 1,300% year-on-year to a total of 5,603.
Market operations and washing trading dominate tactics
The fraud cases revealed by MEXC include a variety of illegal activities, including market manipulation, bot-driven transactions, and laundry transactions.
Over 3,000 different fraud syndicates have been found to work in different regions, targeting both low-cap and mid-cap tokens.
These syndicates deploy bots, adjust transactions, artificially inflate volumes and prices, thereby misleading ordinary investors.
In particular, wash transactions continue to be widely used, where the same entities as both buyers and sellers work to create a false impression of demand.
This tactic remains difficult to detect across distributed exchanges and is increasingly adapted to bypass detection algorithms on centralized platforms.
The Independent States (CIS), a former Soviet republic group, also saw a sharp rise in flagged accounts.
MEXC reported that it had identified 6,404 fraudulent accounts from its region in the first quarter of 2025. This was an increase of 245% compared to the previous year.
The surge highlights the geographical spread of sophisticated crypto fraud, driven by increased access to trading platforms and limited enforcement across jurisdictions.
Social media influencers promoting fake trading schemes
MEXC says the rise in crypto fraud is due not only to technology but also to social media manipulation.
According to the company, many fraudulent actors present themselves as influencers or trading educators operating through telegram groups, discord servers, or YouTube channels.
These so-called communities are coordinated fraud rings that promote pump and dump strategies, often leaving a huge loss for ignorant retail investors.
Tracy Jin, the exchange’s chief operating officer, noted that these groups have evolved beyond direct fraud. Instead, they use persuasive educational content to gain trust and influence trading behavior.
By pretending to be an expert, scammers can shape market sentiment and spend time effectively on eviction, using genuine retail investments as liquidity.
MEXC also highlighted that young investors, especially those who enter the market with limited financial education, are particularly vulnerable.
The exchange suggests a direct link between education and sensitivity to fraud, with the majority of flagged users coming from regions where financial literacy remains low.
MEXC launches community education initiative
In response to the rising threat, MEXC has announced a series of education campaigns aimed at protecting users from deceptive practices.
It has been admitted that technology alone cannot solve the problem, but the platform plans to invest in an awareness programme that explains how to detect fake trading signals, avoid pump-and-dump traps, and identify social engineering tactics.
These initiatives will be tailored to markets where fraud is the fastest growing market, including India, Indonesia and parts of Eastern Europe.
The company aims to work with local universities, fintech groups and regulators to enhance digital finance knowledge among retailers.
MEXC’s report highlights challenges in a broader industry. As cryptography becomes more accessible, it becomes more difficult to protect users from abuse.
The platform’s latest fraud statistics serve as a warning to both exchanges, regulators and users, reinforcing the need for stronger safeguards, transparency and ongoing investor education.
