Cryptocurrency fraud in Mexc increases by 200%, with India and Indonesia…

In a recent report by MEXC, a leading global cryptocurrency exchange, a shocking 200% increase in crypto fraud cases has been uncovered during the first quarter of 2025. This surge has brought to light over 80,000 fraudulent accounts, with countries like India and Indonesia emerging as major targets for this concerning trend.

Significantly, MEXC has identified a total of 80,057 cases of fraudulent accounts in Q1 2025, which represents a staggering spike compared to previous years. The rise in India has been notable, with 27,000 related fraud cases, marking a 17% increase. Indonesia, on the other hand, has seen a substantial 1,303% surge in fraudulent accounts, totaling 5,603. This sharp increase is largely attributed to organized fraud syndicates capitalizing on gaps in financial literacy, especially in regions where cryptocurrency participation is on the rise.

These fraudulent activities reported by MEXC encompass various illegal practices, including market manipulation, bot-driven trading, and wash trading. More than 3,000 distinct fraud syndicates have been uncovered, targeting tokens of various market caps. These syndicates utilize bots to coordinate trades, artificially inflating volumes and prices to deceive unsuspecting investors. Wash trading, a practice where the same entity acts as both buyer and seller to fabricate demand, continues to prevail, particularly on decentralized exchanges. Notably, a 245% increase in fraudulent accounts has been observed in the Commonwealth of Independent States (CIS), comprising former Soviet Republics, with MEXC detecting 6,404 cases in the region.

MEXC has also identified social media manipulation as a key driver of crypto fraud. Many fraudsters masquerade as influencers or trading educators, operating through platforms like Telegram groups, Discord servers, and YouTube channels. These groups often endorse pump-and-dump schemes, leaving unsuspecting investors facing significant losses. Tracy Jin, MEXC’s Chief Operating Officer, highlights that these groups have adapted by providing persuasive educational content to gain trust and influence trading behavior. Particularly vulnerable are younger investors with limited financial education, who make up a majority of the fraudulent accounts linked to regions with low financial literacy.

To combat the growing threat of fraud, MEXC has announced educational campaigns aimed at safeguarding users from deceptive practices. Recognizing that technology alone cannot resolve the issue, the platform plans to invest in programs to help users discern false trading signals, steer clear of pump-and-dump traps, and identify social engineering tactics. These initiatives will concentrate on markets facing the fastest surge in fraud, such as India, Indonesia, and parts of Eastern Europe. Collaboration with local universities, fintech groups, and regulators is also on the horizon to elevate retail traders’ comprehension of digital finance.

The recent spike in fraud cases serves as a compelling reminder of the pressing need for strengthened protective measures, transparency, and continuous investor education across cryptocurrency exchanges, regulators, and users alike.