MEXC denies insolvency rumors after $5.5B in withdrawals, pledges transparency with Merkle tree update and calls for third-party audit.
MEXC exchange has recently been under scrutiny due to rumors suggesting insolvency. These rumors began after the exchange saw a significant surge in user withdrawals. MEXC has responded to the speculation, insisting that it remains financially stable. In an effort to assure users, the platform has promised to update its Merkle tree data, allowing users to verify reserves directly.
MEXC Denies Insolvency Amid Surge in Withdrawals
MEXC firmly rejected rumors of insolvency, stating that its assets are fully covered by reserves. According to the exchange, its reserves are more than 100% sufficient to back all user funds.
Despite this assurance, a significant increase in withdrawals, especially in Bitcoin and other major cryptocurrencies, sparked concerns about MEXC’s liquidity. Some traders feared that the platform could face issues handling large-scale withdrawals.
📢Clarification on Rumors Regarding MEXC’s Financial Status
Recent online discussions have circulated unverified rumors regarding MEXC’s financial status. We would like to clearly state that these claims are false and misleading.
MEXC remains in strong financial health. All… pic.twitter.com/o5M35x7Qos
— MEXC (@MEXC_Official) November 1, 2025
While MEXC’s official statement emphasized that all assets are secure, the exchange acknowledged some delays in processing withdrawals. The delays were attributed to the high volume of transactions, not liquidity problems. MEXC also highlighted that its systems are functioning as expected and that user funds are safe.
However, the spike in withdrawal requests has left many users still unsure. These high volumes of withdrawals indicate a lack of full confidence in the platform, which MEXC needs to address. Moving forward, it remains to be seen whether the exchange can restore user trust amid these ongoing concerns.
Market Analysts Call for Third-Party Audit
As skepticism grows, many analysts are urging MEXC to undergo an independent third-party audit to validate its solvency claims. Shanaka Anslem Perera, a financial transparency expert, pointed out that an audit would provide a clearer, more reliable view of MEXC’s financial standing. Perera argued that while MEXC’s statements are reassuring, an independent verification is necessary to restore full confidence.
Moreover, Perera explained that liquidity is best tested when users can withdraw funds without any issues. “Withdrawals are the audit,” he said, emphasizing that the ability to freely move assets is the real test of an exchange’s solvency. As a result, many analysts believe that without this third-party audit, doubts will remain.
Withdrawals are the audit
If an exchange must announce it is fine during a bank run, the market already answered. Proof of reserves that needs a caption is theater. A press release cannot redeem a withdrawal. In final settlement systems, words price at zero and signatures price… https://t.co/Zv52hhxpi7
— Shanaka Anslem Perera ⚡ (@shanaka86) November 1, 2025
The call for an independent audit reflects broader concerns within the crypto industry about exchange transparency. In the wake of past exchange collapses, users and analysts alike are seeking more reliable ways to verify financial stability. The outcome of these discussions will likely influence MEXC’s ability to regain full user trust.
MEXC Focuses on Transparency to Rebuild Trust
In response to these concerns, MEXC has committed to improving transparency. The exchange announced plans to update its Merkle tree data, which will allow users to verify its reserves. This update is seen as a step toward providing clearer, more accessible financial information.
However, transparency alone may not be enough to fully reassure skeptical users. Experts argue that an independent third-party audit remains crucial for verifying MEXC’s claims. While the Merkle tree update is a positive step, it may not be sufficient to restore complete trust without external validation.
MEXC has pledged to continue providing updates on its reserves and liquidity status. By offering more insight into its financial situation, the exchange hopes to rebuild user confidence. Ultimately, the effectiveness of these efforts will depend on how well they address the concerns of the crypto community.