What happened to crypto exchange MEXC?  Did they confiscate the money?

What happened to crypto exchange MEXC? Did they confiscate the money?

Although the issue is still not resolved in the MEXC event, to which the Turkish crypto community reacted a lot, we, as Ozmancoin, wanted to ask the parties about the event. It was important to state what happened chronologically from the mouths of the parties, in terms of preventing tweet pollution and clearly revealing the incident.

Silence from MEXC

Crypto exchange MEXC has yet to respond to queries from OzmanCoin. Hence the stock market outlook and future policy remains uncertain. One of the stock market managers, also known as Zhou, only tweeted once on Twitter, saying:

“The complaining user made profits of over 40,000 USDT through illegal transactions. YGG made this money when the data on its futures contract was at an abnormal level. When we became aware of the incident, this person had already withdrawn 10k USDT… When he sent a new withdrawal request, we froze his account. However, the property was not attached by us. We treat him the same way we treat our other users. This way he was able to withdraw 10,000 USDT before withdrawals were suspended.

Behind the claims of the anonymous user…

As OzmanCoin, we reached out to the other side of the issue and asked for their opinion. Stating that he has been in the crypto sector for a long time and has been trading on several exchanges including MEXC, Pantraders said that he has never faced such a problem in the past.

Responding to queries from Uzmancoin, pantraders stressed on the “fair value” description in the futures and said that the stock market is harassing its clients by setting numbers here at will. Here’s what PanTraders explains:

I bought bitcoin when it was worth $600. I know the market very well over the years.

I was trading there as there are a lot of futures on FTX. I switched to MEXC after FTX got bogged down. But I maintained very small balances and traded in smaller coins. I have never had such a problem before.

“You can still get takeout if the price isn’t there”

The amount of YGG coins was high. I also did some business here. In MEXC, futures liquidation is determined at the fair value determined in the trading pair on the exchange. Fair value is determined by the exchange itself. Even if the price is not found on that trading pair, your position may be liquidated.

“My position was liquidated even though there was no drawdown”

Months ago, my long position in a coin was also liquidated. It would have liquidated if there was a 10% drawdown, but my position was liquidated even if there was no drawdown. I reached out to the exchange and they showed me documents showing that the fair price had actually moved to that liquidation zone at that point in time. For example, it was not present in FTX.

“Liquidation was near impossible”

Seeing activity in YGG, I opened a long trade with high leverage. And here too the fair value was really up. So, since I was long, it was almost impossible to liquidate… the stock market had already raised the fair value to liquidate the short position. So I opened a long position to turn this to my advantage and made a profit. I added to my position that the stock market gives you this right.

“I continued the proceedings after the shooting”

The fact that the fair value was 20% higher was showing me a profit. Because I opened a long position and expanded my position. My profit started increasing. Eventually I got my $10,000. After the shoot, I continued this process. I traded completely on the board and my profits came into my account. My withdrawals stopped after the first 10 thousand dollars.

“Admin sent me a ‘delete tweet’ message”

After the incident, one of the managers, Zhou, sent me a message. He said “delete your tweets, I will help you” but never reverted. Then he tweeted that an unusual transaction had taken place.

“Even when the stock market is at fault…”

The fault lies with the stock market here. They are the ones who increased the fair value by 20%… because they wanted to liquidate the short positions and they succeeded… They don’t pay the long positions who make this an opportunity. When the odds are in their favor they call it a “fair value”, and when the odds are against them they call it an “abnormal number”.

I could not login for 6-7 hours. Then the account opened and my wallet was empty. I was able to withdraw my $10k, but I could not withdraw my $35k. They say, “He took out his 10,000 dollars.” Do I ask him how much to draw?

“Let the losers also get their money back…”

I didn’t create a reasonable price difference. It may have been a mistake, maybe it’s a conscious choice. Therefore, all those who entered less were also liquidated. For those who were liquidated from short positions, “You were liquidated because of the fair value rate?” He sent the message. There are also his pictures. Since a mistake has been made, they should also return their money…

I did not use accusatory words against him. I am already a lawyer. As I said, not being able to manage your bot, technical problems or incompetence of the liquidity managers is none of my business. Did I make up unusual numbers?

After these events occurred, they updated the system in the future. This shows that their systems are already bad.

What does the legal part say?

As for Ozmancoin, we asked lawyer Çağhan Tansel about the legal part of the business. Advocate Tansel specifically emphasized the conditions accepted upon becoming a member of central exchanges and whether the exchanges have local offices:

“needs detailed review”

We do not know which side is right in the above case. To determine this, the processes performed must be examined in detail. However, our advice on how investors should act in such cases is important.

We can see that when opening accounts on centralized exchanges (CEX), digitally signed contracts are generally not well reviewed by investors, and CEX, knowing this, arrange to make their own profits. Are. First of all it should start from here.

Well, let’s say there is no problem on that side as well. As a user, you actually made a profit by acting according to all the rules announced by CEX, but this time CEX acted against its rules and unfairly removed your earnings and did not give you your money. what can you do?

“Turkey may have a solution, but…”

If you have CEX that you trade from Turkey, the conditions may be relatively more advantageous because in some cases in Turkey, you may have the opportunity to work out solutions according to existing laws.

If you traded on a CEX located overseas, legal redress must be sought in the manner and location specified in your user agreement, but this is both very costly and impractical. This issue is already one of the important issues being regulated with the progress of the crypto market. It is quite possible that we will see a shift towards a formula where CEXs have local representatives where they serve and can be held legally accountable, just as social media platforms open local offices in the countries where they operate. Are.

Until then, it is important that investors are aware that in the event of a crash they will be left alone with CEX most of the time, and knowing this risk, it is important that they determine how much cryptocurrency to hold in their account and for how long. Have to keep till

It was published:

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