Quick Breakdown:
- Crypto trader “White Whale” says MEXC froze his $3.1 million and urged him to fly to Malaysia for in-person KYC, despite already completing verification online.
- He launched a $2 million pressure campaign, offering rewards via NFTs and USDC payouts to rally community support for the release of funds.
- Other users, including Pablo Ruiz with $2M in USDT, report similar freezes, fueling scrutiny over centralized exchanges’ opaque risk controls.
A prominent crypto trader known as “White Whale” has accused global exchange MEXC of freezing $3.1 million in funds and pressuring him to travel to Malaysia for an in-person identity verification.
According to screenshots shared by the trader, MEXC’s head of customer service extended an “exclusive invitation” to meet the leadership team in Malaysia, suggesting the trip could accelerate the release of his frozen assets. The move would be unusual in the crypto industry, where Know Your Customer (KYC) checks are typically completed remotely through documents and online verification.
Oh yeah – this is crypto. You fellow degens love receipts. You go you. pic.twitter.com/yw4Uk3QogO
— The White Whale (@TheWhiteWhaleHL) August 25, 2025
White Whale claims he already completed MEXC’s full KYC process, including face recognition, proof of address, and phone verification. He described the invitation as “coercive” and flagged security risks, citing recent cases of kidnappings targeting crypto holders. He also noted that MEXC’s terms of service make no reference to in-person KYC requirements.
The trader further alleged that MEXC tried to entice him with potential trading perks and a partnership offer, which he rejected.
$2M Pressure Campaign
On Monday, White Whale escalated the dispute by launching a $2 million campaign to pressure MEXC into unfreezing the funds. The effort encourages supporters to mint a free NFT on the Base network and tag MEXC executives or use the hashtag #FreeTheWhiteWhale. If the funds are released, $1 million in USDC will be distributed equally among 20,000 NFT holders, while another $1 million will go to charities.
Other Traders Report Similar Issues
The case has amplified ongoing concerns about centralized exchanges (CEXs) and their control over customer assets. While MEXC has not publicly commented, other traders have reported similar experiences. Pablo Ruiz, another MEXC user, said his account holding over $2 million in Tether (USDT) was frozen in April under what the platform called “risk control.”
Ruiz shared that MEXC informed him his account would remain under review for 365 days, with automated replies directing him to return in April 2026. The controversy adds to mounting pressure on CEXs to improve transparency and accountability as the industry faces heightened scrutiny worldwide.
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