A cryptocurrency trader, operating under the alias “White Whale,” has initiated a $2 million campaign across social media platforms, accusing MEXC, a well-known centralized crypto exchange, of unjustly freezing roughly $3.1 million of their funds. The alleged incident occurred in July of the past year (2025). The trader maintains they did nothing to breach MEXC’s usage agreements and highlights that the freeze happened even after they successfully completed advanced “Know Your Customer” (KYC) identity checks. According to reports, MEXC informed the trader that the investigation into the account could span up to a year, with no clear updates or documentation being offered during that period [1].
The “White Whale” contends that the freezing of funds was a direct consequence of their trading success. They claim their consistent ability to outperform MEXC’s designated market makers – third-party entities responsible for maintaining market liquidity through constant buy and sell orders – triggered the exchange’s internal risk management systems. This allegedly led to the imposition of restrictions on withdrawals. Furthermore, the trader states that MEXC’s global customer service head extended a special “invitation” to travel to Malaysia, ostensibly for a face-to-face meeting with senior management to potentially expedite the resolution of the frozen funds issue [1].
To increase awareness and exert pressure on MEXC, the trader launched a unique initiative. They are encouraging crypto enthusiasts to mint a complimentary non-fungible token (NFT) on the Base blockchain network. Participants are then asked to tag either MEXC or the exchange’s COO on X (formerly Twitter) using the hashtag #FreeTheWhiteWhale, and to replace their profile picture with a specific image. The plan outlines that if MEXC releases the frozen funds, $1 million of the total bounty will be divided equally amongst the first 20,000 NFT holders, giving each person $50 USDC. An additional $1 million is earmarked for donations to reputable charities, with the trader promising to provide verifiable on-chain transaction records to confirm the donations [2].
The trader emphasizes that their experience is not unique, pointing out that numerous other traders have reportedly faced similar account freezes following periods of substantial profit-making. This echoes findings by Acheron Trading, which revealed that approximately 78.5% of newly launched cryptocurrency tokens between April and June 2024 disrupted fair price discovery. Moreover, they found that 69.9% of initial token listings exhibited “parasitic” behavior, suggesting market makers capitalized on pre-market conditions to artificially inflate scarcity and generate hype [1].
In response to the accusations, a MEXC representative stated that the exchange operates with strict adherence to established risk management protocols and does not freeze user assets without legitimate justification. The representative further clarified that the 12-month review period is only applicable to accounts that are implicated in coordinated violations of terms or demonstrate high-risk activity. They also mentioned that MEXC has improved its risk control mechanisms to ensure better compliance and heightened security measures. However, the MEXC spokesperson did not directly address the claim concerning the invitation for the trader to travel to Malaysia to resolve the situation [1].
This isn’t the first time MEXC has been accused of unfairly freezing user funds. Back in March 2025, a user known as Pablo Ruiz reported that over $2 million worth of Tether (USDT) stablecoin had been frozen in his account without any prior warning or explanation. Ruiz indicated that his attempts to get clarity from the exchange resulted in automated responses, including a notification that the account review would take a full 365 days [1].
Source:
[1] Crypto trader claims MEXC asked them to fly to Malaysia … (https://cointelegraph.com/news/mexc-tells-trader-meet-in-person-recover-frozen-funds)
[2] $3M Frozen by MEXC? Trader Strikes Back With $2M … (https://www.cryptotimes.io/2025/08/25/3m-frozen-by-mexc-trader-strikes-back-with-2m-campaign/)