important notes
- Approximately $5.5 billion was withdrawn from MEXC in a short period of time.
- Users are currently facing delays in withdrawals and suspect the company is going into private bankruptcy.
- MEXC denied the claims and promised to update the Merkle Tree data later so users could see reserves directly.
Cryptocurrency exchange MEXC is suspected to be facing bankruptcy, especially after a large number of withdrawals were allowed on the platform. Users have reportedly experienced delays when attempting to withdraw funds. This was after about $5.5 billion left Mexico in a short period of time.
MEXC denies bankruptcy rumors
Recently, MEXC users have experienced some difficulties withdrawing funds from the platform. Earlier, MEXC recorded an outflow of $5.5 billion due to large withdrawals of funds from the exchange. This situation has led market analysts to suspect that the cryptocurrency exchange is suffering from bankruptcy problems.
MEXC said the user’s bankruptcy claims were “false and misleading” and stressed that the cryptocurrency exchange’s “financial health is strong.”
The company issued an official statement denying the ongoing bankruptcy rumors and said it would update its Merkle Tree data at a later date to allow users to view their reserves directly. Users were assured of the safety of their assets.
MEXC claimed that all assets are “fully backed” and supported by proof of reserve (PoR) representing over 100% coverage. Blockchain analytics platform CryptoQuant data does not support the exchange’s claims. Apparently, the amount of Bitcoin withdrawn on MEXC has skyrocketed to an all-time high. As things stand, analysts are questioning the transparency of crypto exchanges.
As a result, financial transparency analyst Shanaka Anslem called on the company to provide verifiable on-chain balances, disclose clear debt, and undergo external verification.
BTC, ETH, SOL affected by mass outflow
MEXC does not appear to be the only exchange caught up in these large-scale breaches, but it is the largest exchange within the group. In the past 24 hours, Gemini and OKX also recorded some notable net outflows per Coinglass data.
Furthermore, Bitcoin (BTC), Solana (SOL), and Ethereum (ETH) accounted for the majority of assets moved.
Popular crypto analyst Ted Pillows confirmed that several financial firms have resumed selling their Ethereum holdings, a sign of another market downturn. On October 30th, the Spot Ethereum ETF recorded $184 million in outflows. Only BlackRock’s iShares Ethereum Trust ETF (ETHA) recorded an outflow of $120 million.
Unfortunately, this will put ETH price at risk unless it regains strength above $4,000. At the time of writing, Ethereum was trading at $3,868.74, up 0.87% in the past 24 hours, according to CoinMarketCap data.
📢 Clarifying rumors regarding MEXC’s financial situation
Unconfirmed rumors regarding MEXC’s financial situation have been circulating in recent online discussions. We would like to state unequivocally that these claims are false and misleading.
MEXC continues to maintain a healthy financial position. all… pic.twitter.com/o5M35x7Qos
— MEXC (@MEXC_Official) November 1, 2025
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Disclaimer: Coinspeaker is committed to providing fair and transparent reporting. This article is intended to provide accurate and timely information but should not be taken as financial or investment advice. Market conditions can change rapidly, so we recommend that you verify the information yourself and consult a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and the innovations that drive public acceptance and global integration of emerging technologies. His desire to educate people about cryptocurrencies has also inspired his contributions to popular blockchain media and sites.