MEXC Launches $100 Million Guardian Fund to Strengthen User Protection Against Cyberattacks
Cryptocurrency exchange MEXC has announced the establishment of a $100 million Guardian Fund on June 11, 2025, marking a major step forward in its efforts to protect users from serious security incidents.
Increasing Transparency and User Protection in the Age of Digital Attacks
According to a report from Cointelegraph, the Guardian Fund is designed to provide immediate financial support to users affected by serious incidents such as platform breaches, technical errors, and targeted attacks. MEXC has made the fund’s wallet address public on the blockchain to ensure real-time transparency and allow the community to track the fund’s activities through blockchain explorers.
The fund allows for rapid distribution once incidents are confirmed by MEXC's risk, security, and compliance departments. Affected users will go through a manual eligibility review process. According to CEO Tracy Jin, this is MEXC's way of demonstrating "visible accountability," rather than just making empty promises.
Industry Security Landscape: Attacks Are Increasingly Sophisticated
2025 saw an unprecedented number of exchange hacks. Data from PeckShield shows that more than $1.6 billion in cryptocurrency was stolen in the first quarter alone, with the Bybit exploit accounting for 92% of the total losses.
February 2025 saw the largest cryptocurrency hack of the year, with a total of $1.51 billion lost across multiple platforms. Phemex – another exchange – also suffered a $85 million loss due to a hot wallet breach in January. Meanwhile, organized hacker groups such as North Korea’s Lazarus are believed to have stolen up to $1.34 billion in 2024, accounting for the majority of global hacks.
Competitive Strategy: Guardian Fund is a Strategic Move
With a daily spot trading volume of nearly $4 billion and over 40 million users across 170 countries, MEXC has established itself as one of the largest global exchanges. The Guardian Fund currently accounts for around 2.5% of daily trading volume – a significant proportion that demonstrates its commitment to protecting users.
According to CoinGecko, the global cryptocurrency exchange industry is expected to reach $33.42 billion in 2024 and grow to $88.79 billion by 2033. While Binance still leads with a 38% market share, mid-tier exchanges like MEXC are building a competitive advantage through specialized features and high security standards.
Regulatory Pressure and Market Expectations
Regulators around the world are increasingly requiring cryptocurrency platforms to implement stricter user protection measures. Europe’s MiCA framework sets standards for digital asset transactions, while in the US, FDIC policies and the Trump administration are gradually opening up financial institutions to participate in the cryptocurrency sector.
This backdrop has prompted exchanges like MEXC to act to maintain their credibility and attract investors, especially institutional investors. The creation of a transparent protection fund is a proactive response, surpassing the traditional insurance model, which often has a slow and cumbersome processing process.
Enhanced security: Multiple layers of built-in protection
In addition to the Guardian Fund, MEXC also maintains a Proof of Reserves system and separate insurance accounts for derivatives trading. These mechanisms, combined with security layers such as multi-factor authentication, regular audits, and internal control policies, create a comprehensive secure trading environment.
Experts highly appreciate MEXC's direction, considering it a potential model for the industry in combining blockchain technology with modern insurance and governance standards.
-Conclusion: Guardian Fund is a statement of commitment to protecting users
In the context of the sharp increase in hacks and security breaches, MEXC is taking the lead in setting a new standard of accountability and transparency in the digital asset trading industry. The $100 million Guardian Fund is not only a financial measure, but also a symbol of the industry's strong shift towards professionalism and comprehensive protection for investors.
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