MEXC Denies Insolvency Rumors Amid User Withdrawals

Crypto exchange MEXC has issued an official statement to address the growing fears about its financial stability. The company’s statement came after some users said they faced delays when trying to withdraw their funds, leading to panic and heavy withdrawals.

MEXC said all user assets are fully backed and that it will soon update its Proof of Reserves data so users can check and confirm the exchange’s holdings themselves.

MEXC Reassures Users that All Assets Are Fully Backed

Recent on-chain data suggested that large amounts of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are being withdrawn from the MEXC platform. This has raised new concerns about liquidity and user trust. However, the trading platform stated that the recent rumors circulating on social media are false and misleading.

The exchange emphasized that it remains financially strong and that users’ assets are completely secure. To support this claim, MEXC announced plans to update its Merkle tree data. This verification system allows users to confirm the platform’s reserves directly.

In its official statement, the company said that all assets are supported by a Proof of Reserves (PoR) system, which currently shows over 100% coverage. This means that for every token deposited by users, MEXC holds an equal or greater amount in reserve.

Record Withdrawals Raise Questions Over MEXC’s Liquidity

Despite MEXC’s public reassurances, blockchain data revealed massive outflows history. According to CryptoQuant, Bitcoin withdrawals from the exchange have reached record levels. Coinglass data shows that MEXC holds around $5.13 billion in assets. 

However, it recorded over $5.50 billion in withdrawals within just 24 hours, the highest among major exchanges. This sharp increase in withdrawals points to growing caution among traders. Other exchanges like KuCoin and Bitget also saw users pulling out funds, but their outflows were much smaller compared to MEXC’s.

Financial transparency expert Shanaka Anslem Perera said that simply issuing statements is not enough. He explained that like MEXC needs to show clear on-chain balances, reveal its liabilities, and undergo independent audits to regain user trust.

This move boosts users’ confidence, as seen with Tether International sharing its financial report for the third quarter of 2025.

Industry Voices Draw Parallels to FTX Collapse

Crypto commentator CookieSlap compared MEXC’s situation to the early warning signs seen before the FTX exchange collapsed in 2022. 

The FTX restructuring team recently claimed the platform was never fully bankrupt and will repay its creditors. The situation still highlights how fragile trust can be in centralized exchanges. 

Another analyst, StayCoti Node, told traders to check their positions and keep full control of their money. He warned about the risks of keeping assets on centralized exchanges. How well MEXC handles large withdrawals will likely decide if users trust its claim that all funds are fully backed.