Exchange Protection Funds: Is Bigger Safer?… MEXC Ventures Analyzes Execution and Replenishment Capacity

MEXC Ventures published research analyzing crypto exchange protection funds, arguing that fund size alone is insufficient and that execution capability and replenishment mechanisms must also be evaluated. The report compares Binance, Bitget, and MEXC, proposing customer-asset-to-fund ratios, asset composition, and on-chain verifiability as key criteria for user protection. The analysis follows a roughly $6.3 billion hack at Binance on October 29, 2026, after which Binance pledged to fully compensate user losses and reported replenishing about 95% of affected assets as of November 1. The report also distinguishes between replenishing damaged assets and recovering stolen funds, noting these are separate processes. The findings matter because they shift the debate on exchange safety from headline fund balances toward operational readiness and transparency. Watch for how exchanges disclose fund composition and on-chain proof of coverage in response.