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About three months after a pseudonymous crypto trader said the MEXC exchange had frozen about $3 million of his holdings, a representative publicly apologized and released the funds.
In a Friday X post, MEXC Chief Strategy Officer Cecilia Hsueh he said the exchange “f***-ed up” in the management of a situation with a crypto user called White Whale. In July, MEXC frozen $3.1 million of user funds, allegedly due to the exchange’s “risk control rules”.
“We apologize [the White Whale]and his money is already released,” Hsueh said. “He can claim it at any time. I made a mistake in communicating with him. I got emotional, and I didn’t have it.”
The move away from the centralized exchange prompted the White Whale to launch a $2 million social media campaign targeting MEXC in August. Later he said he had increased funding for the business to $2.5 million after reporting that MEXC had asked to fly to Malaysia to resolve the issue and release the funds.
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Many users also blame the exchange for the situation
“[W]hile appreciated, it [the apology] they didn’t specify what they were apologizing for,” he said the White Whale in response to Hsueh’s post. “Implicating that I was a criminal (with his public AML claims in the beginning) or a scammer (with the more recent accusations after AML was publicly debunked) would have been nice.”
The crypto trader said that the “work is not done yet”, stating that there were hundreds of other cases similar to his that he intended to pursue to recover the funds. He pledged to “distribute 100%” of the $3 million released to 20,000 supporters behind his social media campaign and non-profit organization.
“Most regular users don’t stand a chance in a situation like this,” he said Reddit user Effective-Impact8054 in response to the resolution. “So yes, it’s great that the White Whale has finally been paid, but it doesn’t change the fact that MEXC froze a legitimate trader’s funds for months and only solved it once the Internet got involved.”
According to data from Nansen, the price of the token of MEXC (MX) fell down about 3.5% after Hsueh’s post, from $2.30 to $2.22 at the time of publication.
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