**MEXC Denies Insolvency Rumors Amid Surge in Withdrawal Delays and Fund Outflows**
MEXC exchange has officially denied ongoing insolvency rumors following user reports of withdrawal delays and increased fund outflows. In an effort to boost transparency, the crypto exchange announced it will update its Merkle tree data tonight, allowing users to verify the reserves directly.
### Outflows Surge to $5.5 Billion Amid Liquidity Fears
The exchange issued a public statement reaffirming that all assets are “fully backed” and supported by Proof of Reserves (PoR), showing over 100% coverage. This clarification comes amid growing speculation on social media regarding MEXC’s liquidity status, with some users reporting slower transaction times.
Responding to these claims, MEXC described the rumors as “false and misleading” and emphasized its “strong financial health.”
However, data from CryptoQuant reveals that Bitcoin withdrawals on MEXC have surged to record highs. These massive outflows reflect growing apprehension among traders. Visual data highlights large movements of BTC, SOL, and ETH over the past 24 hours.
Meanwhile, exchange reserve data from Coinglass indicates MEXC currently holds around $5.13 billion in assets. Despite this, the platform experienced $5.50 billion in outflows within the past 24 hours—the largest amount compared to its peers. Other exchanges, including KuCoin and Bitget, also registered net outflows, but these were significantly smaller in scale.
### Analysts Question MEXC’s Transparency, Call for Independent Audit
A key question remains: Is MEXC’s PoR statement sufficient to restore user confidence?
Financial transparency analyst Shanaka Anslem Perera weighed in, stating, “Evidence of solvency is no press release.” Perera emphasized that the exchange must demonstrate verifiable on-chain balances, disclose evident liabilities, and undergo external verification. He also highlighted that “withdrawals are the audit,” meaning an exchange’s liquidity strength is truly tested when users can freely withdraw assets without disruption.
Crypto commentator CookieSlap drew comparisons between MEXC’s situation and the lead-up to the FTX collapse. While the FTX restructuring team recently claimed that FTX was never bankrupt and assured creditors would receive full repayment, CookieSlap argued that “PoR needs to be done by an unbiased third party with full access to all balance sheets.”
Adding to the caution, crypto commentator StayCoti Node advised holders to “review your positions” and maintain control over their funds, cautioning, “They all say funds are safe, until they aren’t.”
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As concerns linger, market participants continue to watch MEXC closely, awaiting more transparent proof of its financial health and the ability to guarantee asset withdrawals without interruption.
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