Nearly three months after freezing approximately $3 million of a pseudonymous crypto trader’s holdings, MEXC has publicly apologized and returned the funds. In a candid statement on X, MEXC’s Chief Strategy Officer Cecilia Hsueh admitted the exchange mishandled the case involving the trader known as the White Whale. She acknowledged mistakes in communication and emotional responses, stating, “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 initial freeze in July was reportedly due to MEXC’s “risk control rules,” sparking widespread criticism from the crypto community. The White Whale responded by launching a $2 million social media campaign against the exchange, which he later increased to $2.5 million, after MEXC reportedly requested he travel to Malaysia to resolve the issue.
Despite the apology, the White Whale expressed that the exchange failed to clarify the reasons behind their actions, noting allegations of criminality and scamming that were never substantiated. He emphasized that the issue extends beyond his experience, with hundreds of similar cases he intends to pursue to recover funds. He also pledged to distribute the entire $3 million released to 20,000 supporters and nonprofit organizations.
The situation underscores the precarious position of regular users when exchanges freeze assets, with many praising the resolution but criticizing the lack of transparency and prolonged freeze. Following the apology, MEXC’s token (MX) experienced a roughly 3.5% price drop.
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