MEXC July‑August 2026 Security Report Highlights 38.66 M USDT Intercepted, Futures Insurance Fund at 792 M USDT

MEXC released its bi‑monthly security report for July and August 2026, detailing its efforts to protect user assets and its overall financial safeguards.

Risk‑Related Funds Intercepted

The exchange handled 215 reports of externally stolen or fraud‑related funds flowing into its platform. All cases were successfully intercepted, covering a total of 38,655,490 USDT. Of these, 42 cases involved judicial freezes. Compared with the previous period, the number of intercepted cases rose by roughly 2,971% and the value of intercepted funds increased by about 12,646%.

Account Restrictions and Asset Recovery

MEXC identified and restricted 20,752 accounts linked to risk‑related activity, a 118.03% increase over the prior period. The platform also processed 818 applications to return misdirected assets, returning 602,225 USDT, up 75.31%.

Futures Insurance Fund

As of 1 September 2026, the Futures Insurance Fund held 791,696,422 USDT, a 5.44% rise from the previous reporting window. The fund serves as a buffer against negative balances that may arise during liquidations, helping to reduce the likelihood of auto‑deleveraging.

Reserve Ratios Remain Strong

Proof‑of‑reserves data shows reserve ratios above 100% for four major assets:

• BTC: approx. 288% (12,312.75 BTC total vs 4,282.20 BTC user assets)
• ETH: approx. 113% (66,227.79 ETH total)
• USDT: approx. 115% (≈1.94 billion USDT total)
• USDC: approx. 114% (≈194.85 million USDC total)

On‑chain addresses for these reserves are publicly disclosed, allowing users to verify inclusion via Merkle Tree proofs.

Industry Context

The broader crypto sector recorded 184 security incidents in July‑August 2026, with estimated losses of about $535 million. Phishing, fraud, endpoint and supply‑chain attacks accounted for roughly 48% of incidents, and attackers increasingly employ AI to automate phishing content and malware creation.

Outlook

MEXC plans to expand its Guardian Fund from $100 million to $500 million, maintaining a dual‑reserve structure of USDT for liquidity and BTC for long‑term stability.