🧊 MEXC Exchange Faces Backlash Over Frozen Funds
MEXC, one of the world’s leading crypto exchanges, has officially apologized after wrongfully freezing $3 million belonging to a well-known trader known as “The White Whale.”
The incident sparked massive controversy across the crypto community, drawing attention from on-chain investigator ZachXBT and leading to a public statement from MEXC’s leadership.
🔑 Key Highlights
- MEXC admits fault for freezing $3 million from the trader “The White Whale.”
- ZachXBT’s intervention pushed MEXC to issue a public apology.
- The exchange will soon launch a “fast-track dispute resolution channel.”
- The controversy caused a 30x spike in Bitcoin withdrawals from MEXC.
📅 Background: The White Whale’s $3 Million Account Freeze
The controversy began in July 2025, when MEXC froze The White Whale’s account, accusing him of violating its terms of service.
The exchange claimed the trader placed two orders within the same second, interpreting this as automated trading activity — which is against their policy.
The White Whale denied these claims and started a public campaign demanding the return of his frozen funds.
Despite months of silence from MEXC, the pressure continued to grow online.
🧠 MEXC Apologizes After ZachXBT’s Intervention
Things took a major turn when ZachXBT, one of the most trusted names in blockchain investigation, spoke out in support of The White Whale.
His involvement pushed the issue into the spotlight, forcing MEXC to respond.
On October 31, 2025, MEXC’s Chief Strategy Officer, Cecilia Hsueh, posted a public apology on X (formerly Twitter):
“We messed up. We sincerely apologize to The White Whale. His funds have been released and are available for withdrawal anytime. I got emotional, and I take responsibility for that,” she wrote.
Following her statement, Hsueh announced that MEXC will create a “fast-track channel” to handle similar disputes more efficiently in the future.
💬 Community Reactions: Traders Demand Transparency
The apology didn’t silence critics immediately.
Several traders expressed frustration, claiming similar experiences with frozen accounts and delayed withdrawals.
One trader, Joji, commented:
“It took massive pressure for you to fix this. If he had only 100 followers, this would never have happened.”
Hsueh responded:
“You’re right. This issue woke up the whole company. We’re working to make sure it never happens again.”
She also admitted that MEXC’s internal departments — including risk management, operations, and PR — have struggled to keep pace with the exchange’s rapid growth into a top-10 global exchange by trading volume.
⚙️ MEXC Promises Structural Reforms
Cecilia Hsueh stated that MEXC’s leadership recognizes the need for greater transparency and stronger internal processes.
“We’re changing how we operate. Risk control is not meant to steal anyone’s funds. It’s meant to protect our users,” she added.
MEXC now aims to rebuild user trust through improved communication, dispute handling, and security protocols.
📈 Bitcoin Withdrawals Surge 30x Amid Controversy
According to CryptoQuant data, Bitcoin withdrawals from MEXC skyrocketed shortly after the incident — jumping from around 40 daily withdrawals to over 1,200 in mid-July 2025.
The trend remains high, with 1,400+ BTC withdrawals recorded as of this week.
Many users have since voiced similar concerns, claiming long delays or unresolved withdrawal issues.
One trader shared:
“I faced the same problem. It was solved after two weeks, but I’ve lost trust completely.”
This ongoing fallout highlights the growing trust gap between MEXC and its global user base — something the exchange must address urgently.
🧭 Conclusion: MEXC’s Road to Regaining User Trust
The White Whale incident serves as a wake-up call for MEXC and other crypto exchanges on the importance of transparency, customer support, and fair dispute resolution.
As MEXC works to rebuild credibility with its fast-track dispute system and leadership reforms, the crypto community will be watching closely to see if actions follow words.
