About three months after freezing approximately $3 million of a pseudonymous crypto trader’s holdings, MEXC exchange has publicly apologized and released the funds. Cecilia Hsueh, MEXC’s Chief Strategy Officer, admitted the exchange mishandled the situation involving the trader known as the White Whale. In a candid statement on X, Hsueh said, “We apologize to [the White Whale], and his money is already released. He can claim it at any time. I messed up in communicating with him. I got emotional, and I shouldn’t have.”
The funds were initially frozen in July reportedly due to the exchange’s “risk control rules,” prompting the White Whale to launch a $2 million social media campaign against MEXC. The trader also disclosed increasing the campaign’s budget to $2.5 million after MEXC requested his physical presence in Malaysia to resolve the matter.
Despite the apology and fund release, the White Whale expressed dissatisfaction on social media, highlighting that the exchange never clearly specified the reason for the freeze or addressed public accusations labeling him a criminal or scammer. He declared the fight is ongoing, aiming to assist hundreds of other traders facing similar fund freezes and pledging to distribute the recovered $3 million to supporters and nonprofits.
Community reactions underscore the broader concern that most individual users lack the resources to challenge such freezes. Reddit user Effective-Impact8054 commented, “It’s great that the White Whale finally got paid, but it doesn’t change the fact that MEXC froze a legit trader’s funds for months and only fixed it once the internet got involved.”
Following the announcement, data from Nansen revealed MEXC’s token (MX) experienced a 3.5% drop in value, reflecting the exchange’s recent turbulence.
Read more: https://cointelegraph.com/news/mexc-white-whale-trader-token-freeze