India, Indonesia leads with 30,000 cases

• MEXC reports 80,057 fraud cases in Q1 2025, a 200% YoY increase.
• India flagged 27,000 fraudulent accounts, up 17% from last year.
• Indonesia saw 1,303% surge in fraud cases, reaching 5,603.

As cryptocurrency adoption widens across emerging markets, so do the risks tied to financial fraud. On Friday, May 30, global crypto exchange MEXC revealed a sharp 200% increase in detected fraud on its platform over the past year.

The number of flagged cases climbed to 80,057 in the first quarter of 2025 alone, double the figures from the same period in 2024.

This rise is being attributed to a growing number of coordinated fraud syndicates exploiting gaps in financial literacy, particularly in regions with surging crypto participation.

India has emerged as the largest source of fraudulent activity, accounting for over a third of all flagged cases. With nearly 27,000 accounts identified by MEXC in Q1, the country saw a 17% increase in flagged users compared to the previous year.

Indonesia followed as the second-largest contributor, where the number of fraudulent accounts spiked by more than 1,300% year over year, reaching 5,603 in total.

Market manipulation and wash trading dominate tactics

The fraud cases uncovered by MEXC involve a range of illicit activities, including market manipulation, bot-driven trading, and wash trading.

Over 3,000 distinct fraud syndicates were found to be operating across various regions, targeting both low-cap and mid-cap tokens.

These syndicates deploy bots and coordinate trades to artificially inflate volumes and prices, thereby misleading ordinary investors.

In particular, wash trading — where the same entity acts as both buyer and seller to create a false impression of demand — continues to be widely used.

This tactic remains difficult to detect across decentralised exchanges and is increasingly being adapted to bypass detection algorithms on centralised platforms as well.

The Commonwealth of Independent States (CIS), a group of former Soviet republics, also saw a sharp increase in flagged accounts.

MEXC reported identifying 6,404 fraudulent accounts from the region in Q1 2025, up 245% compared to the previous year.

This surge highlights the geographical spread of sophisticated crypto fraud, driven by growing access to trading platforms and limited enforcement across jurisdictions.

Social media influencers fuelling fake trading schemes

MEXC has attributed the rise in crypto fraud not only to technology but also to manipulation through social media.

According to the company, many fraudulent actors present themselves as influencers or trading educators, often operating through Telegram groups, Discord servers, or YouTube channels.

These so-called communities are coordinated fraud rings promoting pump-and-dump strategies, often leaving unaware retail investors with significant losses.

The exchange’s Chief Operating Officer, Tracy Jin, noted that these groups have evolved beyond direct scams. Instead, they use persuasive educational content to gain trust and influence trading behaviour.

By posing as experts, fraudsters are able to shape market sentiment and time their exits effectively, using genuine retail investment as liquidity.

MEXC also stressed that younger investors are particularly vulnerable, especially those entering the market with limited financial education.

The exchange says the majority of the flagged users were from regions where financial literacy remains low, suggesting a direct link between education and susceptibility to fraud.

MEXC to launch regional education initiatives

In response to the rising threat, MEXC has announced a series of educational campaigns aimed at protecting users from deceptive practices.

While it acknowledged that technology alone cannot solve the issue, the platform plans to invest in awareness programmes that explain how to detect fake trading signals, avoid pump-and-dump traps, and identify social engineering tactics.

These initiatives will be tailored to markets where fraud is growing fastest, including India, Indonesia, and parts of Eastern Europe.

The company aims to collaborate with local universities, fintech groups, and regulators to enhance digital finance knowledge among retail traders.

MEXC’s report underscores a broader industry challenge: as crypto becomes more accessible, protecting users from abuse becomes more difficult.

The platform’s latest fraud statistics serve as a warning for exchanges, regulators, and users alike, reinforcing the need for stronger safeguards, transparency, and ongoing investor education.