WEEX Fee Churning Scam Exposes Risks of Unlicensed Crypto Platforms

A new case of fee churning has come to light on the cryptocurrency exchange WEEX, highlighting the risks posed by unlicensed platforms and their affiliate systems.

Fee churning, also known as commission exploitation, involves using high-leverage trades that open and close quickly to generate trading volume and commissions from users' accounts.

The case in question involves a user who deposited $1,000 into the WEEX exchange and had their balance dropped to $77 just three hours after registering for a copy-trade account with influencer KriptoBugraTw.

Experts have warned that this structure creates a basis for parties using copy-trade systems to prioritize generating trades over actual profit, as more trades mean higher commissions for the counterparty.