![[단독] As the yield soared, the evaporated coin gift… MEXC, an unapproved virtual asset exchange, sales Baektae](https://img.etoday.co.kr/pto_db/2023/08/20230808145910_1914516_1200_747.jpg "[단독] As the yield soared, the evaporated coin gift… MEXC, an unapproved virtual asset exchange, sales Baektae")
Coin futures products disappeared overnight as yields skyrocketed
Including ‘principal + profits’, several investors tied up in billions of investment
Unlicensed operators + prohibited futures trading… “I don’t think it will be easy to compensate”
▲ A page promoting coin futures trading on the website of virtual asset exchange MEXC. Coin futures trading is prohibited in Korea, and businesses that have not obtained VASP certification cannot operate in Korean. (Source = MEXC YGG futures trading website capture)
Coin futures products disappear overnight from an unlicensed virtual asset exchange that has not been licensed by the financial authorities, causing controversy. The exchange explained that abnormal transaction data had occurred. However, users claim that when the yield of the product soared, the exchange froze the account and recovered the principal and profits of the product.
As a result of our coverage on the 8th, the ‘YGG_USDT’ futures product that was being traded on the virtual asset exchange MEXC disappeared around 5 am on the same day. MEXC said, “Abnormal transaction data occurred in the YGG-USDT futures transaction due to a platform system problem from 7:00 pm to 10:00 pm the previous day.” “The abnormal transaction data was immediately restored.” In addition, it was announced that “as compensation for this, we will provide 100 USDT gift experience money.” 1 USDT is a coin whose value is fixed to 1 dollar, and the explanation is that 100 dollars will be paid as compensation.
The problem is that the principal and proceeds invested in YGG futures products are much more than $100. Most of the investors who complained to the magazine about damage amounted to billions of dollars, including principal and profits. One victim, while reluctant to disclose the exact amount of the investment, said “in billions,” while another investor said, “300,000 dollars (approximately 394.08 million won) including the principal and proceeds are tied up.”
Investors immediately protested through the MEXC customer center, but complained that they were not receiving proper answers and explanations. Questions were asked about what kind of problem was with the abnormal transaction data of the YGG-USDT perpetual futures and whether there was a plan to recover the recovered amount in the future, but the customer center insisted that it could not answer. According to investors, the customer center side is reiterating the position that “the announcement is the content received from the department in charge, and there is nothing to be individually informed by the customer center.”
The YGG coin futures product is a futures product using the altcoin called YGG. YGG is a coin that attracted attention when game-related coins emerged after Exy Infinity. It was first traded on Uniswap and is currently being traded on Binance and Kucoin. It is a coin that is not listed on major domestic exchanges.
In Korea, trading of virtual asset futures is prohibited in principle. Also, MEXC is an exchange that has not been licensed as a virtual asset operator (VASP) in Korea. Last year, financial authorities handed over 16 unlicensed virtual asset operators, including MEXC, to the police for violating the Specific Financial Information Act, but when the investigation was delayed, they secretly started operating in Korea. The Korea Communications Standards Commission, which decides whether to block unreported operators, is in a position to suspend deliberation until the judicial authority makes a decision. In the end, investors suffered damage while the judicial and financial authorities were negligent.
As a result of our coverage last month, it was confirmed that 9 out of 16 unlicensed businesses handed over to the judicial authorities by the Financial Services Commission are continuing their business in Korea. has been waged MEXC has been actively promoting YGG gift products, which have been in trouble, while providing Korean language services. MEXC said, “Get big profits through YGG. Leverage allows you to track and trade small price movements to generate returns that will make up for your time and effort.”
In the virtual asset industry, it is believed that it will not be easy for users to receive proper compensation as MEXC is an unlicensed virtual asset exchange and trading of coin futures products is prohibited in Korea. An official from the virtual asset industry said, “It seems difficult for the financial authorities to actively respond to this. I think I will respond similarly to Haru Invest,” he said.