Key Points: MEXC unveils $100M fund to cover user losses from hacks, failures, or system breaches. Wallet addresses are public, allowing users to track
Unlike conventional insurance models, MEXCs fund is designed for faster deployment. After a confirmed incident, the platform can allocate resources directly to affected users without delay. This shortens the wait time typically involved in external claims processing.
MEXCs internal team—made up of members from compliance, security, and risk control departments—reviews all compensation requests. A spokesperson said,
“Our internal team will gather all relevant information and determine the appropriate compensation based on the nature and extent of the loss.”
Each claim also goes through a manual eligibility assessment process.
Plans for Independent Oversight and Future Growth
Currently, MEXC manages the fund internally. However, the exchange is exploring partnerships with outside auditing and risk management firms. These collaborations would aim to increase transparency and provide external oversight in future operations.
The protection fund represents about 2.5% of the exchange‘s daily trading volume. Data from CoinMarketCap shows MEXC handled $4,000,932,196 in spot trading over the past 24 hours. This volume adds scale to the fund’s potential reach and importance in supporting the platforms user base.
The launch of the fund follows a sharp rise in crypto-related hacks. Blockchain security firm PeckShield reported that over $1.6 billion was stolen in the first quarter of 2025. As we reported, the majority of that total—more than $1.5 billion—was linked to a centralized exchange breach involving Bybit. The attack is suspected to have ties to North Koreas Lazarus Group.
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