Cryptocurrency exchange MEXC has addressed growing user anxieties surrounding its financial stability following reports of delays in withdrawals and a potential liquidity crisis. The company released a statement affirming that all user assets are fully backed and plans to publicly reveal their reserves, using a Merkle tree system for transparency. 🚨 This comes amid concerns about the exchange’s ability to meet withdrawal requests amidst record-breaking outflows from users. 👀 📈 While MEXC claims its financial position is secure, on-chain data suggests significant withdrawals of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are taking place, raising questions about the platform’s liquidity. Despite these concerns, MEXC stresses that user assets are safe and will update their Proof of Reserves (PoR) system soon to provide further transparency. 🛡️. Industry experts caution, however, that simply issuing statements is not enough and call for clear on-chain balances and independent audits for full trust recovery. 🔎 The company’s response echoes the concerns raised after FTX’s collapse in 2022, which highlighted the fragility of trust within centralized exchanges. The incident has triggered calls for increased transparency from MEXC as users weigh the risks of holding their assets on centralized platforms like this one.