MEXC responds to solvency rumors, proof of reserves is over 100%

Cryptocurrency exchange MEXC has released an official statement addressing online rumors questioning its financial health. The company categorically denied the claims as “false and misleading” and reassured users that all customer assets are fully backed.

Exchange dismisses solvency concerns

In its announcement, MEXC clarified that recent social media conversations suggesting financial problems have no factual basis. “Mexico continues to maintain its financial health,” the company said. It added that it confirms that all major assets are at least 100% backed by proof-of-reserve (PoR) data. The exchange also announced plans to update its Merkle Tree data later tonight. This allows users to view their reserves individually.

MEXC said this transparency measure is in line with its long-term commitment. To maintain trust and adhere to industry best practices. MEXC posted the full statement on its official website. The company also reaffirmed that it will keep users’ funds safe and that users can publicly cross-check all data sources.

Breakaway activities raise questions

This clarification came following a week-long withdrawal of records from MEXC. This led to speculation about the platform’s solvency. Withdrawal activity on the exchange surged earlier this year to its highest level since 2018, according to data shared by Whale Insider.

Bitcoin: Exchange withdrawal trading chart shared by @WhaleInsider

A chart comparing Bitcoin price fluctuations and MEXC withdrawal volume is shown. Large capital outflows often occur during periods of increased market activity. Especially when prices reach new highs. Analysts have suggested that such spikes may not necessarily indicate panic. However, this could reflect traders moving funds into personal wallets for safety or profit-taking reasons. Still, the timing of the withdrawal caused some users to voice their concerns online. Users spread unconfirmed rumors that MEXC’s reserves may be tight.

MEXC values ​​transparency

MEXC leaders emphasized that the company has consistently prioritized transparency and accountability since its founding. The exchange maintains a multi-source reserve validation framework. Prove the backing of your assets using a combination of on-chain data and third-party audits. It is a cryptographic tool that allows anyone to match their holdings to their total reserves by updating the Merkle Tree proof system. MEXC aims to give users complete confidence in financial stability. “The information is public and verifiable,” the exchange said.

Industry background and market reaction

The cryptocurrency industry has become increasingly sensitive to solvency concerns. Following the failure of several major exchanges in recent years. As a result, the Proof of Reserves report has become a key trust metric for users looking for peace of mind. About where they hold their assets. Now, MEXC’s clear response and reserve ratio of over 100% appear to be aimed at calming investors’ nerves. It remains to be seen whether it is enough to fully restore user trust. But the exchange insists it has nothing to hide and everything to prove.