MEXC Launches $100M Protection Reserve to Safeguard Users From Breaches

Crypto exchange MEXC has launched a $100 million protection reserve to safeguard users in case of platform-level breaches or critical failures

Crypto exchange MEXC has launched a $100 million protection reserve to mitigate user losses in the event of platform-level breaches or critical failures, placing itself among a limited number of players offering real-time compensation for technical breakdowns or hacks.

The initiative, announced on Wednesday, is designed for swift deployment, aiming to avoid the usual delays associated with traditional insurance. Upon the confirmation of a security breach, a specialized internal team—comprising members from risk, compliance, and cybersecurity—will rapidly assess the incident and decide on compensation based on the incurred losses.

In contrast to other platforms that keep such mechanisms veiled, MEXC has disclosed the wallet addresses linked to the fund, inviting public scrutiny, and is exploring partnerships with third-party auditors to further expand oversight.

The fund currently equals around 2.5% of MEXC’s daily trading volume, which recently surpassed $3.9 billion, according to CoinMarketCap data.

This move follows a series of major attacks across the crypto industry. In the first half of 2025 alone, over $1.6 billion in crypto was stolen, with a significant portion allegedly linked to a single exploit tied to North Korea’s Lazarus Group.

MEXC’s leadership maintains that the fund is not merely a cosmetic measure but rather an essential component of accountability in an industry still grappling with persistent security threats.