Lucía Peña
In its latest quarterly report, MEXC crypto exchange revealed a dramatic 200% increase in fraudulent trading activities between January and March 2025. This sharp uptick signals a troubling trend in market manipulation and digital deception.
The exchange identified over 80,000 organized fraud attempts originating from more than 3,000 coordinated scam groups. These operations involved wash trading, bot-driven manipulation, and unethical trade executions that unfairly exploited users on the platform.
The report indicates that India led the surge in fraudulent activity, with MEXC flagging close to 27,000 suspicious accounts. Following closely were the CIS (Commonwealth of Independent States) region with 6,404 flagged accounts, and Indonesia with 5,603 cases.
Social Engineering Becomes 2025’s Crypto Threat
Tracy Jin, MEXC’s Chief Operating Officer, stated that a wave of social engineering scams has fueled this rise in illicit behavior.
“In contrast to the DeFi hacks that dominated 2021, 2025 is increasingly defined by socially engineered manipulation tactics, often disguised as legitimate educational communities,” said Jin.
These fraudulent schemes often trick victims via fake trading groups, misleading educational content, and coordinated social media campaigns. New users, particularly in high-risk regions, are falling victim due to insufficient knowledge about crypto markets and scam patterns.
Education Is the First Line of Defense
MEXC emphasized that the key to reducing crypto-related fraud is investor education and awareness. Many victims enter the market without understanding common risks, making them vulnerable to deceptive financial engineering.
$330 Million Lost in a Single Social Scam Case
In April 2025, well-known blockchain investigator ZachXBT uncovered a shocking case involving an elderly individual who lost $330 million worth of Bitcoin to a highly sophisticated social engineering attack.
Thanks to swift action from the Binance Security team and blockchain security experts, $7 million of the stolen assets were frozen, though the bulk remains unrecovered.
Coinbase Faces Data Breach Impacting 70,000 Users
Adding to 2025’s troubling security landscape, Coinbase confirmed a data breach in May, which affected up to 70,000 customers. Although user funds and private keys remained secure, the attackers obtained sensitive information such as names, phone numbers, and addresses.
TechCrunch founder Michael Arrington raised concern that the leak could pose a physical safety risk to investors, as their personal data could be exploited in real-world attacks or targeted extortion attempts.
