MEXC Launches $100M Fund to Guard Against Crypto Threats – Coincu

Key Points:

• MEXC unveils $100M fund to cover user losses from hacks, failures, or system breaches.
• Wallet addresses are public, allowing users to track fund activity and verify real-time balances.
• Fund equals 2.5% of MEXC’s daily volume; aims for faster payouts than traditional insurance.

Crypto exchange MEXC has launched a $100 million user protection fund. The initiative is designed to cover losses from major platform incidents, including infrastructure breaches, system failures, and targeted attacks.

The fund will serve as a financial shield in situations where MEXC systems face direct compromise or critical vulnerabilities. According to the exchange, this structure allows for fast user compensation once an event is verified by internal teams.

Transparency Through Public Wallets and Real-Time Monitoring

MEXC has made wallet addresses linked to the fund publicly available. These addresses are visible on its official website, allowing anyone to verify balances using blockchain explorers. This move supports ongoing efforts to improve user trust and accountability.

The platform has also built a dedicated web portal to explain the fund’s structure and processes. Users can access details on covered scenarios and stay informed about active compensation cases through the same channel.

Fast Response Model Replaces Traditional Insurance

Unlike conventional insurance models, MEXC’s 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.

MEXC’s 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 platform’s 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 Korea’s Lazarus Group.

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