- Coordinated market manipulation schemes on MEXC surged 60% between January and February 2025.
- Manipulation groups were trading over $20 million in daily volumes on the exchange.
- Crypto markets may have lost $2.57 billion to these schemes in 2024.
The rise of large-scale market manipulation on cryptocurrency exchange MEXC underscores how sophisticated actors are exploiting new techniques to extract money from crypto markets.
To understand the surge in manipulative activity, CCN spoke with MEXC’s COO, Tracy Jin, who attributed the trend to the declining profitability of other crypto scams, such as wallet hacks and fraudulent token launches.
Market Manipulation on the Rise
MEXC’s investigation found that bad actors have been manipulating markets using abusive trading tactics, including spoofing, front-running, and quote stuffing.
According to Jin, these groups are shifting toward more “legitimate” but low-profile methods of extracting funds.
“Coordinated manipulation on centralized exchanges fits this model well, especially given their expertise in blockchain and trading, along with access to advanced tools,” the executive said.
MEXC identified two major groups behind these activities. One, based in Vietnam, included 33 users operating 168 accounts. The other, located in the Commonwealth of Independent States (CIS), had 138 users managing over 1,500 accounts.
MEXC responded by freezing these accounts and making the findings public.
“When you catch people red-handed, silence is not an option. Companies must decide whether to sweep it under the rug or accept short-term reputational costs in favor of long-term transparency. We’re dealing with a new, bold, and relatively simple form of market interference,” Jin noted.
Troublingly, decentralized exchanges (DEXs) will continue to see common manipulative schemes such as pump-and-dumps, which can be easily coordinated.
However, Jin notes that DEXs “aren’t the main focus for serious manipulators” as their user numbers are too small.
Indeed, the crypto industry needs to be aware of the many evolving threats surrounding it. As Jin explains, coordination with other exchanges is vital in combating bad actors.
A Costly but Short-Lived Trend
Jin expects these manipulation schemes to persist throughout 2025 and spread to other exchanges. However, she believes they will eventually decline.
“This isn’t the kind of scheme where someone can simply launch a new token or spin up another website to start over. In crypto, being caught manipulating the market leaves a lasting mark,” she explained.
When properly calibrated, automated tracking systems can be highly effective in detecting manipulation by analyzing dozens of indicators simultaneously. However, fine-tuning these systems requires vast data collection and a strong statistical foundation.
“Smaller exchanges may lack the resources to build complex surveillance systems or manage the data needed to calibrate them. That’s where we believe collaboration matters,” Jin highlighted.
Jin warns that as top exchanges crack down, bad actors may migrate to smaller, less-regulated platforms, which is “exactly the risk” the industry is facing right now.
“The only real way to prevent this kind of arbitrage is through open information-sharing,” Jin expressed.
According to Chainalysis’ 2025 Crypto Crime Report , wash trading on centralized and decentralized platforms may have reached $2.57 billion in 2024—highlighting the urgent need for industry-wide cooperation.
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