Crypto Exchange Mexc has introduced a user protection fund in the amount of $ 100 million aimed at protecting users against the main violations of the platform, technical failures or other grave security threats.
The fund aims to compensate for users in the case of grave security incidents, including platform infrastructure violations, critical gaps in the system or targeted immense -scale hacks, Cointelegraph informed.
MEXC has also published the portfolio addresses related to the Fund on its website, enabling users to verify balances and monitor the activity of funds in real time. A dedicated internet portal will also provide information on the structure of the Fund, scenarios covered and ongoing cases of compensation.
According to the company, the Fund offers protection in cases where MEXC systems are directly violated or affected by grave gaps.
“It’s not just about promises, it’s about responsibility and providing visible security when they matter,” said Tracy Jin, MEXC operating director.
Related: MEXC detects a 200% enhance in fraud during Q1
Designed for quick implementation
Unlike established insurance models, which often require long claim processes, the Mexc fund has been designed for quick implementation, the exchange provided. After confirming the incident, the replacement may immediately assign resources to the affected users.
The spokesman told CointeLgraph that all compensation decisions are checked and approved by the “dedicated internal team” MEXC, which includes members from the risk, compliance and security control department.
They added that after verifying and reviewing the incident, the affected users would undergo manual assessment of qualifications. “Our internal team will collect all relevant information and determine the appropriate compensation based on the nature and scope of loss,” said the spokesman.
Currently, fund management is served on its own. However, the stock exchange stated that they are studying partnerships with reputable control and risk control of other people to enhance transparency and supervision in the future.
The fund accounts for about 2.5% of the daily turnover of MEXC. Data from Coinmarketcap can be seen Over the past day, the stock exchange had $ 3.98 billion in turnover.
Related: USD 2.1 billion hacked in 2025: Hackers operate human behavior
Cryptographic market harassed
The launch takes place after a number of thunderous security violations in the cryptographic industry.
According to the April report, Peckkshield made hackers made over $ 1.6 billion in crypto in the first quarter of 2025. Most, over $ 1.5 billion, were associated with one exploit directed at a centralized stock exchange, allegedly carried out by the Lazarus group in North Korea.
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