Three years after the collapse of FTX, dubbed as one of the most disruptive failures in modern finance, the digital asset industry should have already internalised the core lesson that fragile systems break in predictable ways. Yet the recent issues surrounding MEXC suggest that the sector is still struggling with the same fundamental weaknesses. Instead of moving into a more resilient chapter, the market continues to depend on centralised structures that reveal their risks only when users are already exposed.
The scale of the FTX failure should have prompted irreversible change. Industry commentary notes that the collapse left more than one million customers impacted and losses that ran into billions of dollars. According to a legal analysis summary, the failure demonstrated that client assets were not safeguarded. After the collapse, self-custody adoption increased significantly as users sought to reduce exposure to platform risk; research noted that hardware wallet use spiked. It was a reminder that user protection in crypto is not guaranteed by platforms. It is guaranteed by architecture and habits that limit dependence on opaque intermediaries.
Despite this, the MEXC situation demonstrates how quickly the industry drifts back into old patterns. Sudden trading restrictions, unclear liquidation mechanics, and inconsistent communication echo problems seen not only at FTX but also at Celsius, Voyager, and other platforms that failed before it. When platforms hold user funds without offering real transparency into liabilities, liquidity buffers, or risk engines, customers face asymmetric risk. They know too little until it is too late.
The broader market conditions magnify the issue. Monthly derivatives trading on centralised exchanges rose to an estimated US$3.12 trillion in July 2022, according to CryptoCompare. Even more recent figures show that combined spot and derivatives volumes hit more than US$9.12 trillion in March 2024, according to a CCData Exchange Review. When exchanges run complex leveraged markets without clear disclosures, the ecosystem becomes vulnerable to cascading failures. Research from the CFA Institute shows that delayed communication during financial incidents increases the likelihood of panic behaviour in markets; a principle that applies especially in crypto environments where liquidity can vanish very quickly.
The industry needs to move beyond short-term fixes. Proof-of-reserves snapshots are insufficient because they rarely reveal liabilities. Risk models should be documented with clarity comparable to traditional derivatives markets. Platforms must adopt incident-reporting frameworks that provide users with timely, specific information rather than controlled statements that prioritise optics.
At the same time, users deserve safer options. Self-custody must evolve from a niche for advanced users to a standard form of protection. Research shows that many users default to custodial platforms not because they trust them but because self-custody tools still feel complex. If the industry wants fewer platform failures to become existential events, it needs to reduce this complexity. Protection should be the default, not the exception.
Regulators also play a role. Jurisdictions such as Singapore, the European Union, and Hong Kong have made progress on stablecoin rules and custody regimes, yet oversight of derivatives markets remains inconsistent. A coordinated approach is essential to prevent high-risk platforms from shifting across borders in search of lighter supervision.
The lesson from FTX was supposed to be clear. Transparency, robust risk controls, and meaningful user-protection are not optional. They are foundational to trust. Yet the recurring issues in the ecosystem show that the industry often behaves as if memory is short and structural reform is optional.
MEXC is not the core problem. It is a reminder of the deeper issues that remain unaddressed. Crypto cannot claim to build a new financial system while repeating the failures of the old one. Unless user-protection, transparent controls, and accessible self-custody become standard, the same question will remain open.
Three years later, did we really learn?
Julien Nérée is the Chief Product Officer of Ryder. He grew up in the French countryside, studied engineering in Paris, and spent the last 10 years working in Hong Kong, Shenzhen, and Singapore.
With over a decade in consumer hardware, he has led product teams from idea to mass production across Asia and has shipped 250,000+ devices worldwide. Julien’s efforts have generated over $40M in revenue, with companion apps reaching 7 million downloads and 800,000+ monthly active users.
In 2016, He moved to Hong Kong to join Sound Brenner, the music hardware company, as the founding engineer and later Head of Hardware Product. In 2021, he moved to Singapore to join Transcelestial, the telecom company, as their Technical Program Manager, contributing to building a laser network to deliver the future of internet distribution worldwide.
At Ryder, Julien drives product development across design, manufacturing, and software. He also shapes strategic product decisions with the goal of making crypto both safer and accessible.
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