MEXC Responds to Solvency Rumors, Proof-of-Reserves Over 100%

Crypto exchange MEXC has issued an official statement addressing online rumors questioning its financial health. The company firmly denied the claims, calling them “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 chatter suggesting financial troubles has no factual basis. “MEXC remains in strong financial health,” the company stated. It added that Proof of Reserves (PoR) data confirms all major assets are backed by over 100%. The exchange also announced plans to update its Merkle tree data later tonight. It allows users to independently verify the reserves. 

MEXC said this transparency measure aligns with its long term commitment. To maintain trust and uphold industry best practices. MEXC published the full statement on its official website. Where the company also reaffirmed that it holds user funds securely and that users can cross-check all data sources publicly.

Withdrawal Activity Raises Questions

The clarification follows a week of record withdrawals from MEXC. This sparked speculation about the platform’s solvency. According to data shared by Whale Insider, withdrawal activity on the exchange surged to its highest level since 2018 earlier this year.

Bitcoin: Exchange Withdrawing Transactions Chart shared by @WhaleInsider

Charts comparing Bitcoin’s price movements with MEXC withdrawal volumes show. That large outflows often occur during periods of heightened market activity. Particularly when prices reach new highs. Analysts suggest that such spikes may not necessarily signal panic. But it could reflect traders moving funds to personal wallets for security or profit-taking reasons. Still, the timing of the withdrawals prompted some users to voice concern online. Users spread unverified rumors that MEXC’s reserves might be strained.

MEXC Emphasizes Transparency

MEXC’s leadership emphasized that the company has consistently prioritized transparency and accountability since its founding. The exchange maintains a multi-source reserve verification framework. It combines on-chain data with third-party audits to prove asset backing. By updating its Merkle tree proof system, A cryptographic tool that allows anyone to verify their holdings against total reserves. MEXC aims to give users complete confidence in its financial stability. “Information is publicly available and verifiable,” the exchange stated.

Industry Context and Market Reaction

The crypto industry has become increasingly sensitive to solvency concerns. Following the collapse of several major exchanges in recent years. As a result, Proof of Reserves reports have become a key trust indicator for users seeking reassurance. About where they hold their assets. Currently, MEXC’s clear response and over 100% reserve ratio appear aimed at calming investor nerves. We still need to see whether it will be enough to fully restore user confidence. But the exchange insists it has nothing to hide and everything to prove.