About three months after freezing approximately $3 million in a pseudonymous crypto trader’s holdings, the MEXC exchange has publicly apologized and returned the funds. Cecilia Hsueh, MEXC’s Chief Strategy Officer, admitted the exchange “f***-ed up” in handling the situation with the trader known as the White Whale. The funds were initially frozen in July due to MEXC’s so-called “risk control rules.”
In a candid post on X, Hsueh expressed regret over the poor communication and acknowledged emotional mishandling of the case. “We apologize to [the White Whale], and his money is already released,” she said. “He can claim it at any time.”
The freeze sparked a significant backlash, with the White Whale launching a $2 million social media campaign to pressure MEXC. He later increased the campaign’s funding to $2.5 million after MEXC reportedly requested he travel to Malaysia to resolve the issue. Despite the apology, the trader criticized MEXC for implying criminal behavior through initial anti-money laundering accusations, which he says were debunked.
Claiming there are many similar cases, the White Whale vowed to continue pursuing justice for others affected and pledged to distribute 100% of the released funds among 20,000 supporters of his campaign and nonprofits. The incident has drawn criticism from several users who highlight the difficulty many traders would face in such a predicament without public support.
Following the apology, MEXC’s token price dipped about 3.5%, reflecting ongoing market wariness. This episode underscores persistent challenges centralized exchanges face regarding transparency and customer trust.
For the full story, visit: https://cointelegraph.com/news/mexc-white-whale-trader-token-freeze