MEXC Denies Insolvency Claims After $5.5 Billion Withdrawn
Concerns have emerged about the potential insolvency of cryptocurrency exchange MEXC after reports of massive withdrawals totaling $5.5 billion. Users faced withdrawal delays, prompting rumors of financial instability.
MEXC's Response
- MEXC denies insolvency rumors, asserting strong financial health.
- The exchange promises to update Merkle tree data for user verification of reserves.
- MEXC claims full asset backing with Proof-of-Reserves showing over 100% coverage.
- Blockchain analytics platform CryptoQuant indicates a surge in Bitcoin withdrawals, raising transparency concerns.
Financial analyst Shanaka Anslem calls for MEXC to provide on-chain balance verification, disclose liabilities, and undergo external audits.
Market Impact
- MEXC is among exchanges facing significant outflows, alongside Gemini and OKX, according to Coinglass data.
- Assets such as Bitcoin, Ethereum, and Solana were heavily withdrawn.
- Crypto analyst Ted Pillows notes treasury firms are selling Ethereum holdings, impacting market stability.
- Spot Ethereum ETFs saw significant outflows, particularly BlackRock’s iShares Ethereum Trust ETF (ETHA) with $120 million.
- Ethereum trades at $3,868.74, up 0.87% in the last 24 hours.