MEXC's Futures Insurance Fund Tops 750M USDT as Exchange Reports 100%+ Reserve Coverage Across Major Assets

MEXC disclosed in its May–June bimonthly security report that its Futures Insurance Fund reached 751 million USDT as of June 29 — up roughly 191 million USDT, or 34%, from the prior reporting period. The fund is designed to help absorb liquidation slippage during periods of heightened market volatility, reducing the likelihood that Auto-Deleveraging (ADL) is triggered on eligible futures positions.

According to the disclosure, reserve coverage across major assets stood at:

1. BTC — 269.35% (12,656.63 BTC held vs. 4,698.90 BTC owed to users)
2. USDC — 125.41% (~95.41 million USDC held)
3. ETH — 118.14% (77,527.30 ETH held)
4. USDT — 113.95% (~2.139 billion USDT held)

The figures can be independently verified on-chain through MEXC's Merkle Tree-based Proof of Reserves.

The report comes amid a challenging industry environment. Blockchain security data cited by MEXC recorded 142 confirmed security incidents across the crypto sector during May and June, resulting in approximately $194 million in losses, with 55% linked to decentralized finance (DeFi) exploits. According to the report, cross-chain bridges and private-key management remained among the industry's most vulnerable areas.

On user protection, MEXC said its compliance team flagged 9,518 accounts and disrupted 4,394 fraud networks during the reporting period, with most cases identified in the CIS region (2,096) and Indonesia (1,229). The exchange also carried out 53 judicial asset-freezing orders and helped recover 343,515 USDT from misdirected cross-chain transfers.

The report suggests that a larger futures insurance fund may help reduce ADL events during periods of elevated market volatility, while reserve ratios above 100% indicate that reported holdings exceed customer liabilities. These metrics are commonly monitored by market participants when assessing an exchange's risk management and asset backing.