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Crypto Journalist
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Crypto exchange MEXC issued a public apology after freezing $3 million belonging to a well-known trader known as The White Whale, admitting it mishandled the case and released the funds after months of public backlash.
Key tips:
- MEXC apologizes after unfairly freezing $3 million from trader “The White Whale”.
- The problem gained attention after the intervention of chain researcher ZachXBT, prompting the leadership of MEXC to issue a public statement.
- MEXC plans to launch a “fast-track channel” for dispute resolution as it works to resolve transparency and operational issues.
The incident began in July, when MEXC has frozen the trader’s accountclaiming that it violated its terms of service by placing two orders in the same second, which the exchange interpreted as automated trading.
The exchange said that the funds would be lost, but The White Whale denied the accusation and began to publicly pressure the company to return their money.
MEXC admits fault, apologizes to trader after ZachXBT intervention
After weeks of silence, the situation escalated when the prominent researcher in the chain ZachXBT publicly defended the trader, amplifying the demands of responsibility.
On Thursday, MEXC Chief Strategy Officer Cecilia Hsueh released a statement about X admitting guilt.
“We screwed up. We apologize to The White Whale, and his money is already released. He can claim it at any time.” Hsueh wrote. “I messed up in communication with him. I was emotional, and I didn’t have it.”
After the apology, Hsueh said MEXC plans to establish a “fast channel” to resolve similar account disputes.
The White Whale said hundreds of users have contacted it with stories of frozen accounts and inaccessible funds.
The controversy also drew strong criticism from other traders. “It took a while and a lot of hate to make you do it.
100% sure this tweet wouldn’t exist if it was someone with 100 followers,” wrote the pseudonymous trader Joji.
Hsueh answered sincerely: “You are not wrong. It will take a lot to wake up the whole company. We are working to make sure this does not happen again.”
Hsueh said MEXC’s internal problems stemmed from “growing pains,” explaining that as the exchange scaled from a small operation to a top-10 exchange by volume, its risk, operations and PR teams “didn’t keep up with that growth.”
She added: “We will change this… The leadership team now recognizes that MEXC has to improve its transparency.”
Bitcoin Withdrawal From MEXC Spike 30x After White Whale Controversy
Meanwhile, CryptoQuant data shows that Bitcoin withdrawals from MEXC have increased dramatically, from about 40 per day to 1,237 daily in mid-July, coinciding with the freezing of The White Whale’s funds.
Withdrawals have been high this week, with more than 1,400 processed on Friday.
Some users are now saying that they have faced similar problems. “I had the same problem and false allegations,” wrote trader Elja.
“It was resolved after 14 days, but I can’t trust it anymore.” Others accused MEXC of ignoring withdrawal requests for more than a year, highlighting a growing trust deficit between the exchange and its users.
